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Type Scientific Publication In Electronic Form
Scope Discipline-based scholarship
Title The cleansing effect of banking crises
Organization Unit
Authors
  • Reint Gropp
  • Steven Ongena
  • Jörg Rocholl
  • Vahid Saadi
Language
  • English
Place of Publication London
Publisher VoxEU, CEPR Policy Portal
Date 2020
Abstract Text Recessions are periods of low opportunity costs for time and resources, and hence can facilitate a productivity-enhancing reallocation of resources and improve productivity growth. However, recessions can also slow productivity growth by intensifying credit frictions, for instance, through the accumulation of legacy assets in the banking sector. This column investigates the interaction between these two channels in the recent banking crisis and shows that US regions with more restructuring of inefficient banks during the post-Global Crisis recession experienced higher productivity growth in the real sector in subsequent years.
Free access at Official URL
Official URL https://voxeu.org/article/cleansing-effect-banking-crises
Related URLs
Other Identification Number merlin-id:19684
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