Macroeconomic Policy, Product Market Competition, and Growth : The Intangible Investment Channel /

While there is growing evidence of persistent or even permanent output losses from financial crises, the causes remain unclear. One candidate is intangible capital - a rising driver of economic growth that, being non-pledgeable as collateral, is vulnerable to financial frictions. By sheltering intan...

Full description

Bibliographic Details
Main Author: Ahn, JaeBin
Other Authors: Duval, Romain, Sever, Can
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2020.
Series:IMF Working Papers; Working Paper ; No. 2020/025
Online Access:Full text available on IMF
LEADER 02154cas a2200265 a 4500
001 AALejournalIMF016205
008 230101c9999 xx r poo 0 0eng d
020 |c 5.00 USD 
020 |z 9781513528571 
022 |a 1018-5941 
040 |a BD-DhAAL  |c BD-DhAAL 
100 1 |a Ahn, JaeBin. 
245 1 0 |a Macroeconomic Policy, Product Market Competition, and Growth :   |b The Intangible Investment Channel /  |c JaeBin Ahn, Romain Duval, Can Sever. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2020. 
300 |a 1 online resource (28 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a While there is growing evidence of persistent or even permanent output losses from financial crises, the causes remain unclear. One candidate is intangible capital - a rising driver of economic growth that, being non-pledgeable as collateral, is vulnerable to financial frictions. By sheltering intangible investment from financial shocks, counter-cyclical macroeconomic policy could strengthen longer-term growth, particularly so where strong product market competition prevents firms from self-financing their investments through rents. Using a rich cross-country firm-level dataset and exploiting heterogeneity in firm-level exposure to the sharp and unforeseen tightening of credit conditions around September 2008, we find strong support for these theoretical predictions. The quantitative implications are large, highlighting a powerful stabilizing role for macroeconomic policy through the intangible investment channel, and its complementarity with pro-competition product market deregulation. 
538 |a Mode of access: Internet 
700 1 |a Duval, Romain. 
700 1 |a Sever, Can. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2020/025 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2020/025/001.2020.issue-025-en.xml  |z IMF e-Library