One Size Does Not Fit All: TFP in the Aftermath of Financial Crises in Three European Countries

45 Pages Posted: 19 Feb 2021

See all articles by Christian Abele

Christian Abele

Paris School of Economics (PSE)

Agnès Bénassy-Quéré

Paris School of Economics (University Paris 1)

Lionel Fontagne

Banque de France; CEPII; University of Paris 1 Panthéon Sorbonne; Paris School of Economics

Date Written: 2021

Abstract

We analyse the impact of both the Global Financial Crisis of 2008 and the European sovereign and banking crisis of 2011-13 on firm-level productivity in France, Italy and Spain. We show that relying on a single break date in 2008 misses both the Eurozone crisis and countries' institutional specificities. Although leverage and financial constraints affect firm-level productivity negatively, high-leverage firms suffer more from financial constraints only in Italy, when they are relatively small or when their debt is of short maturity. These results call for approaches taking into consideration country-level characteristics of financial institutions and time varying financing constraints of the firms, instead of pooling data and adopting a common break date. One size does not fit all when it comes to identifying the impact of financial crises on firm level productivity.

JEL Classification: E220, E230, E440, D240

Suggested Citation

Abele, Christian and Benassy-Quere, Agnes and Fontagne, Lionel, One Size Does Not Fit All: TFP in the Aftermath of Financial Crises in Three European Countries (2021). CESifo Working Paper No. 8891, Available at SSRN: https://ssrn.com/abstract=3788713 or http://dx.doi.org/10.2139/ssrn.3788713

Christian Abele (Contact Author)

Paris School of Economics (PSE) ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France

Agnes Benassy-Quere

Paris School of Economics (University Paris 1) ( email )

106-112 boulevard de l'Hopital
Paris, F-75013
France
+33 1 44 07 82 19 (Phone)

HOME PAGE: http://www.parisschoolofeconomics.com/benassy-quere-agnes/agnesb.html

Lionel Fontagne

Banque de France ( email )

Paris
France

HOME PAGE: http://www.lionel-fontagne.eu/

CEPII ( email )

9 Rue Georges Pitard
Paris, 75015
France
+33 1 53 68 55 06 (Phone)

HOME PAGE: http://lionelfontagne.weebly.com/

Paris School of Economics ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France
+33 1 44 07 89 94 (Phone)

HOME PAGE: http://lionelfontagne.weebly.com/

University of Paris 1 Panthéon Sorbonne ( email )

Maison des Sciences Economiques
106-112 Bd de l'Hôpital
Paris, 75013
France
+33 1 44 07 89 94 (Phone)
+33 1 53 68 55 01 (Fax)

HOME PAGE: http://lionelfontagne.weebly.com/

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