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The Collateral Channel: How Real Estate Shocks Affect Corporate Investment
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In this article, the impact of real estate prices on corporate investment was studied and the sensitivity of investment to real estate values was found to be a function of local variations in real estate price as shocks to the collateral value of firms that own real estate.Abstract:
What is the impact of real estate prices on corporate investment? In the presence of financing frictions, firms use pledgeable assets as collateral to finance new projects. Through this collateral channel, shocks to the value of real estate can have a large impact on aggregate investment. To compute the sensitivity of investment to collateral value, we use local variations in real estate prices as shocks to the collateral value of firms that own real estate. Over the 1993-2007 period, the representative US corporation invests $0.06 out of each $1 of collateral.read more
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Algorithm research on the influence of financing structure and cash holding on enterprise innovation based on system GMM model function theory
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Booming house prices: friend or foe of innovative firms?
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An analysis of the relationship between land finance and economic growth in resource-based cities in China with the mediating role of housing price
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Home Away From Home？: Impact of LargeｰScale Disasters on the Real Estate Market@@@─大規模災害が不動産市場にもたらす影響─
TL;DR: In this paper, the impact of large-scale disasters on the real estate market has been investigated, including hurricanes and floods, in the context of home-away-from-home (H2H) scenarios.
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Two-Way Fixed Effects Estimation on the Impact of rising house prices on the capital structure of real enterprises in China
TL;DR: In this article , the authors investigated the lagged effect of house price changes on the adjustment of capital structure of real enterprises and the heterogeneity between regions based on a two-way fixed effects model with a sample of 30 Chinese provinces over the period 2000-2020.
References
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Credit Rationing in Markets with Imperfect Information.
Joseph E. Stiglitz,Andrew Weiss +1 more
TL;DR: In this paper, a model is developed to provide the first theoretical justification for true credit rationing in a loan market, where the amount of the loan and amount of collateral demanded affect the behavior and distribution of borrowers, and interest rates serve as screening devices for evaluating risk.
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How Much Should We Trust Differences-In-Differences Estimates?
TL;DR: In this article, the authors randomly generate placebo laws in state-level data on female wages from the Current Population Survey and use OLS to compute the DD estimate of its "effect" as well as the standard error of this estimate.
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Do Investment-Cash Flow Sensitivities Provide Useful Measures of Financing Constraints?
Steven N. Kaplan,Luigi Zingales +1 more
TL;DR: In this article, the authors investigated the relationship between financing constraints and investment-cash flow sensitivities by analyzing the firms identified by Fazzari, Hubbard, and Petersen as having unusually high investment cash flow sensitivity.
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Tobin's Marginal q and Average q : A Neoclassical Interpretation
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