UNIverse - Public Research Portal
Project cover

Financial frictions and firm-level outcomes

Research Project
 | 
01.01.2017
 - 01.01.2021

We study how firms hire labour and invest in capital stock depending on their financial situation. We find that firms that are financially constrained tend to have larger employment elasticities with respect to demand, whereas financially unconstrained firms tend to hoard labour. These findings can explain the differential response of employment during different crises, where some resulted in large employment losses, whereas others did not. We also study the role of financial fricitions for investments. Preliminary results suggest a relatively large effect (which would suggest a large amplification of business cycles).

Collaborations & Cooperations

2021 - Participation or Organization of Collaborations on a national level
Bäurle, Gregor, Senior Economist, Swiss National Bank, Research cooperation
2021 - Participation or Organization of Collaborations on a national level
Steiner, Elizabeth, Senior Economist, Swiss National Bank, Research cooperation

Publications

Bäurle, Gregor, Lein, Sarah M. and Steiner, Elizabeth (2021) ‘Employment Adjustment and Financial Tightness - Evidence from Firm-level Data’, Journal of International Money and Finance, 115, p. 102358. Available at: https://doi.org/10.1016/j.jimonfin.2021.102358.

URLs
URLs

Bäurle, Gregor, Lein, Sarah M. and Steiner, Elizabeth (2018) ‘Employment Adjustment and Financial Constraints - Evidence from Firm-level Data’, WWZ Working Papers. Edited by WWZ Workingpapers Faculty of Business and Economics. WWZ, University of Basel (WWZ Working Papers, 07).

URLs
URLs

Members (1)

Profile Photo

Sarah Lein

Principal Investigator