Agenda > Tous les événements

Andrea VEZZULLI

University of Insubria, Italy

« R&D and Credit Rationing over the Credit Cycle »

 Abstract: We study the effects of credit rationing on Research and Development (R&D) investment using survey and accounting data on a large representative sample of  manufacturing small and medium size enterprises (SMEs). Our econometric  model accounts for the endogeneity of our credit rationing indicator and employs  an innovative theory based identification strategy to account for demand and  supply side determinants of credit rationing. Our results show that the credit channel operates in a non-linear way and amplifies the effects of credit restrictions  on R&D investment decisions during the crisis. We also find that demand and supply side determinants play a differential role in contraction and expansion  periods.
(Authors: Maria Luisa Mancusi  & Andrea Vezzulli)