Data and Code for: Government Borrowing and Crowding Out

Principal Investigator(s):  View help for Principal Investigator(s) Yasin Kursat Onder, Ghent University; Maria Alejandra Ruiz-Sanchez, Central Bank of Colombia; Mauricio Villamizar-Villegas, Central Bank of Colombia; Sara Restrepo-Tamayo, Universidad del Rosario

Version:  View help for Version V1

Name File Type Size Last Modified
  Replication_to_upload 07/17/2023 03:42:AM

Project Citation: 

Onder, Yasin Kursat, Ruiz-Sanchez, Maria Alejandra, Villamizar-Villegas, Mauricio, and Restrepo-Tamayo, Sara. Data and Code for: Government Borrowing and Crowding Out. Nashville, TN: American Economic Association [publisher], 2023. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2023-12-15. https://doi.org/10.3886/E184061V1

Project Description

Summary:  View help for Summary We investigate the impact of fiscal expansions on firm investment by exploiting firms with multiple banking relationships. Further, we conduct a localized approach and compare the lending behavior of banks that barely met and missed the criteria of being a primary dealer, as well as barely winners and losers at government auctions. Our results indicate that a 1 percentage point increase in primary dealer banks' bonds-to-assets ratio decreases loans by 0.2%, which leads to declines in firm investment, profits, and wages. Our findings are grounded in a quantitative model with which we compute the cost of borrowing on the economy.
Funding Sources:  View help for Funding Sources Research Foundation–Flanders; Ghent University Starting Fund (BOF)

Scope of Project

Subject Terms:  View help for Subject Terms fiscal multipliers; regression discontinuity design; crowding out
JEL Classification:  View help for JEL Classification
      E44 Financial Markets and the Macroeconomy
      F34 International Lending and Debt Problems
Geographic Coverage:  View help for Geographic Coverage Colombia
Data Type(s):  View help for Data Type(s) administrative records data

Methodology

Unit(s) of Observation:  View help for Unit(s) of Observation Firm, bank, loan level data

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Published Versions

V1 [2023-12-15]

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