Financial constraints on R&D projects and Minsky moments: Containing the credit cycle
This paper tests Minsky?s financial instability hypothesis (FIH) for a panel of Spanish manufacturing firms. We find that the probability of a firm being financially constrained externally in terms of undertaking innovation projects moves inversely with the business and credit cycle, which is consis...
| Autores: | , , |
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| Formato: | artículo |
| Fecha de publicación: | 2021 |
| País: | España |
| Recursos: | Universidad de Alcalá (UAH) |
| Repositorio: | e_Buah Biblioteca Digital Universidad de Alcalá |
| Idioma: | inglés |
| OAI Identifier: | oai:ebuah.uah.es:10017/60002 |
| Acesso em linha: | http://hdl.handle.net/10017/60002 https://dx.doi.org/10.1007/s00191-021-00721-y |
| Access Level: | acceso abierto |
| Palavra-chave: | R&D Financial constraints Business cycle Credit cycle Financial instability hypothesis E12 E32 G01 Economía Economics |
| Resumo: | This paper tests Minsky?s financial instability hypothesis (FIH) for a panel of Spanish manufacturing firms. We find that the probability of a firm being financially constrained externally in terms of undertaking innovation projects moves inversely with the business and credit cycle, which is consistent with Minsky?s FIH. We provide evidence that the credit and business cycles strengthen each other. These results highlight the importance of implementing polices designed to contain the financial cycle. |
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