Conferences Editions
P.Balduzzi, E.Brancati, M.Brianti, F.Schiantarelli
The Economic Effects of COVID-19 and Credit Constraints
Nobels, Economists and Scientists for Covid-19
Speakers
Pierluigi Balduzzi
Boston College
Emanuele Brancati
Università La Sapienza Roma
Marco Brianti
Boston College
Fabio Schiantarelli
Boston College, Iza Institute of Labor Economics
I.S.E.O. Institute is partnering with Università degli Studi di Brescia for the project “Nobels, Economists and Scientists for Covid-19”: a gathering of articles, essays and short videos by Nobel Laureates in Economics, economists and scientists from all over the world willing to give their contribute to comprehend what effects the Covid-19 spread will have on our lives and economies. We will be regularly publishing columns on our website (under the section Conferences/Covid) and on the webpage of University of Brescia.
The Economic Effects of COVID-19 and Credit Constraints: Evidence from Italian Firms’ Expectations and Plans
ABSTRACT (full paper at the bottom of the page)
Professors Pierluigi Balduzzi (Boston College), Emanuele Brancati (Sapienza University of Rome), Marco Brianti (Boston College) and Fabio Schiantarelli (Boston College; IZA Institute of Labor Economics investigate the economic effects of the COVID-19 pandemic and the role played by credit constraints in the transmission mechanism, using a novel survey of expectations and plans of Italian firms, taken just before and after the outbreak. Most firms revise downward their expectations for sales, orders, employment, and investment, while prices are expected to increase at a faster rate, with geographical and sectoral heterogeneity in the size of the effects. Credit constraints amplify the effects on factor demand and sales of the COVID-19 generated shocks. Credit-constrained firms also expect to charge higher prices, relative to unconstrained firms. The search for and availability of liquidity is a key determinant of firms’ plans. Finally, both supply and demand shocks play a role in shaping firms’ expectations and plans, with supply shocks being slightly more important in the aggregate.
I.S.E.O. Institute is partnering with Università degli Studi di Brescia for the project “Nobels, Economists and Scientists for Covid-19”: a gathering of articles, essays and short videos by Nobel Laureates in Economics, economists and scientists from all over the world willing to give their contribute to comprehend what effects the Covid-19 spread will have on our lives and economies. We will be regularly publishing columns on our website (under the section Conferences/Covid) and on the webpage of University of Brescia.
The Economic Effects of COVID-19 and Credit Constraints: Evidence from Italian Firms’ Expectations and Plans
ABSTRACT (full paper at the bottom of the page)
Professors Pierluigi Balduzzi (Boston College), Emanuele Brancati (Sapienza University of Rome), Marco Brianti (Boston College) and Fabio Schiantarelli (Boston College; IZA Institute of Labor Economics investigate the economic effects of the COVID-19 pandemic and the role played by credit constraints in the transmission mechanism, using a novel survey of expectations and plans of Italian firms, taken just before and after the outbreak. Most firms revise downward their expectations for sales, orders, employment, and investment, while prices are expected to increase at a faster rate, with geographical and sectoral heterogeneity in the size of the effects. Credit constraints amplify the effects on factor demand and sales of the COVID-19 generated shocks. Credit-constrained firms also expect to charge higher prices, relative to unconstrained firms. The search for and availability of liquidity is a key determinant of firms’ plans. Finally, both supply and demand shocks play a role in shaping firms’ expectations and plans, with supply shocks being slightly more important in the aggregate.
Downloadable documents
The Economic Effects of COVID-19 and Credit Constraints
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