Arbeitspapier
Business fixed investment: evidence of a financial accelerator in Europe
Financial accelerator theories imply that weak balance sheets can amplify adverse shocks on firm investment. This effect should be asymmetric, stronger in downturns than in upturns and stronger for small firms than for large firms. This paper provides empirical evidence of the presence of a financial accelerator in the four largest euro area economies: Germany, France, Italy and Spain. Using annual firm balance sheet data over the period 1983 - 1997 it is shown that weak balance sheets are more important in explaining investment during downturns than during upturns. It is further shown that the effects of the accelerator are largest for small firms.
- Language
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Englisch
- Bibliographic citation
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Series: ECB Working Paper ; No. 37
- Classification
-
Wirtschaft
Investment; Capital; Intangible Capital; Capacity
Financial Markets and the Macroeconomy
- Subject
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business fixed investment
- Event
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Geistige Schöpfung
- (who)
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Vermeulen, Philip
- Event
-
Veröffentlichung
- (who)
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European Central Bank (ECB)
- (where)
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Frankfurt a. M.
- (when)
-
2000
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Vermeulen, Philip
- European Central Bank (ECB)
Time of origin
- 2000
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