全球智库信息集成服务系统(G2TT): DP15912 Growing Like Germany: Local Public Debt, Local Banks, Low Private Investment

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP15912
	DP15912 Growing Like Germany: Local Public Debt, Local Banks, Low Private Investment
	Iryna Stewen; Mathias Hoffmann; Michael Stiefel
发表日期	2021-03-13
出版年	2021
语种	英语
摘要	Using a firm-bank panel of more than 1m German firms over 2010-2016, we document that local public bank lending to municipalities crowds out private investment. Our results show how crowding-out can happen in a developed economy characterized by low interest rates and fiscal austerity. Our mechanism relies on two structural features of Germany's banking landscape: First, the geographical segmentation of credit markets for small and medium firms (SME) which are dominated by local banks. Secondly, a special statutory mandate requiring local public banks to lend to municipalities. With yields on local government debt declining to all-time lows, local public banks tried to alleviate stress on their balance sheets by using their local market power to charge higher rates on their SME customers. This crowded out firm investment. Perversely, fiscal consolidation at the state and federal levels contributed to this effect by putting pressure on the budgets of municipal governments which increasingly borrowed from local public banks. Crowding-out lowered aggregate private investment by around 30-40 bio euros per year (or 1 percent of GDP). Thus, we identify a novel channel through which low interest rates can adversely affect bank lending and firm performance. Our results also illustrate how segmented credit markets can amplify negative multiplier effects from fiscal austerity.
主题	Financial Economics ; International Macroeconomics and Finance ; Public Economics
关键词	Local public finance Firm-level investment Crowding-out Fiscal austerity Global and intra-european imbalances
URL	https://cepr.org/publications/dp15912
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/544904
推荐引用方式 GB/T 7714	Iryna Stewen,Mathias Hoffmann,Michael Stiefel. DP15912 Growing Like Germany: Local Public Debt, Local Banks, Low Private Investment. 2021.