Hebous, Shafik and Zimmermann, Tom (2021). Can government demand stimulate private investment? Evidence from US federal procurement. J. Monetary Econ., 118. S. 178 - 195. AMSTERDAM: ELSEVIER. ISSN 1873-1295
Full text not available from this repository.Abstract
Demand shocks lower firm financing premiums by increasing the present value of cash flow, thereby easing firm financing constraints. We study the effects of unanticipated federal spending shocks on firm investment in the United States using a novel panel dataset that combines federal procurement contracts with key financial firm-level information. Consistent with the financial accelerator model, our results suggest that 1 dollar of federal purchases increases capital investment of financially constrained firms by 10 to 13 cents over a horizon of 4 quarters, but has no effect on investment of unconstrained firms. (c) 2020 International Monetary Fund. Published by Elsevier B.V.
Item Type: | Journal Article | ||||||||||||
Creators: |
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URN: | urn:nbn:de:hbz:38-570789 | ||||||||||||
DOI: | 10.1016/j.jmoneco.2020.09.005 | ||||||||||||
Journal or Publication Title: | J. Monetary Econ. | ||||||||||||
Volume: | 118 | ||||||||||||
Page Range: | S. 178 - 195 | ||||||||||||
Date: | 2021 | ||||||||||||
Publisher: | ELSEVIER | ||||||||||||
Place of Publication: | AMSTERDAM | ||||||||||||
ISSN: | 1873-1295 | ||||||||||||
Language: | English | ||||||||||||
Faculty: | Unspecified | ||||||||||||
Divisions: | Unspecified | ||||||||||||
Subjects: | no entry | ||||||||||||
Uncontrolled Keywords: |
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URI: | http://kups.ub.uni-koeln.de/id/eprint/57078 |
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