International Financial Flows and Misallocati on joint with Federico Cingano
We study the impact of international financial flows on credit allocation exploiting the early 2000s boom in ca pital inflows in Italy. Using detailed bank-firm matched data, we identify lenders that benefited more from the flows and estimate whether the subsequ ent shock to credit supply varied with firm characteristics. Exposed banks significantly expanded lending to high-productive and low-risk firms. Riski er firms also benefitted from the supply shock conditional on being highly productive. These results hold using alternative measures of firm productiv ity and risk or of bank exposure to the capital flows, and do not seem to b e driven by concurrent changes in bank funding or by the sorting of borrowe rs and lenders. Our findings do not support the idea that international fin ancial flows contributed to increase misallocation.
DTSTAMP:20260404T110552Z DTSTART:20191106T130000Z DTEND:20191106T140000Z SEQUENCE:0 TRANSP:OPAQUE END:VEVENT END:VCALENDAR