SME failures under large liquidity shocks : an application to the COVID-19 crisis / by Pierre-Olivier Gourinchas, Şebnem Kalemli-Özcan, Veronika Penciakova and Nick Sander.: FB3-5/2023-32E-PDF
"We study the effects of financial frictions on firm exit when firms face large liquidity shocks. We develop a simple model of firm cost-minimization that introduces a financial friction that limits firms’ borrowing capacity to smooth temporary shocks to liquidity. In this framework, firm exit arises from the interaction between this financial friction and fluctuations in cash flow due to aggregate and sectoral changes in demand conditions, as well as more traditional shocks to productivity. To evaluate the implications of our model, we use firm-level data on small and medium-sized enterprises (SMEs) in 11 European countries"--Abstract.
Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.927517&sl=0
| Department/Agency | Bank of Canada, issuing body. |
|---|---|
| Title | SME failures under large liquidity shocks : an application to the COVID-19 crisis / by Pierre-Olivier Gourinchas, Şebnem Kalemli-Özcan, Veronika Penciakova and Nick Sander. |
| Series title | Staff working paper = Document de travail du personnel, 1701-9397 ; 2023-32 |
| Publication type | Series - View Master Record |
| Language | [English] |
| Format | Electronic |
| Electronic document | |
| Note(s) | "Last updated: June 9, 2023." Includes bibliographical references. Includes abstract in French. |
| Publishing information | [Ottawa] : Bank of Canada = Banque du Canada, 2023. ©2023 |
| Author / Contributor | Gourinchas, Pierre-Olivier, author. |
| Description | 1 online resource (ii, 51 pages) : charts. |
| Catalogue number |
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| Subject terms | COVID-19 Pandemic, 2020- -- Economic aspects. Small business -- Finance. Pandémie de COVID-19, 2020- -- Aspect économique. Petites et moyennes entreprises -- Finances. |
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