Credit and investment distortions: Evidence from Mexican manufacturing

C-Tier
Journal: Economics Letters
Year: 2020
Volume: 197
Issue: C

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We document a transmission channel from credit conditions to capital accumulation via investment wedges. Using a simple multi-industry model of production and investment, we measure these wedges at the 4-digit industry level from Mexican manufacturing and show that they account for most of the changes in aggregate capital over time. We also find a robust relation between the wedges and financial variables: credit and interest rates, also measured at the industry level.

Technical Details

RePEc Handle
repec:eee:ecolet:v:197:y:2020:i:c:s0165176520303700
Journal Field
General
Author Count
3
Added to Database
2026-01-26