From hibernation to reallocation: Loan guarantees and their implications for post-COVID-19 productivity:
The paper analyses the role of loan guarantee programmes following the COVID-19 outbreak in alleviating firm distress as well as their broader impacts on productivity via reallocation, relying on a simulation model and econometric estimations. The simulation exercise relies on a simple cash-flow acc...
Gespeichert in:
| 1. Verfasser: | |
|---|---|
| Weitere Verfasser: | |
| Format: | Elektronisch E-Book |
| Sprache: | English |
| Veröffentlicht: |
Paris
OECD Publishing
2021
|
| Schriftenreihe: | OECD Economics Department Working Papers
no.1687 |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Zusammenfassung: | The paper analyses the role of loan guarantee programmes following the COVID-19 outbreak in alleviating firm distress as well as their broader impacts on productivity via reallocation, relying on a simulation model and econometric estimations. The simulation exercise relies on a simple cash-flow accounting model, a large dataset reporting balance sheets of firms located in 14 countries and granular data on the magnitude of the COVID-19 shock. Our findings suggest that i) the COVID-19 shock had the potential to seriously distort market selection; and ii) policy actions corrected up to 30% of the inefficiency of market selection in the short-term, shielding many high productive firms from distress and supporting zombie firms only to a limited extent. The econometric exercise, based on historical data and standard models of dynamic allocative efficiency, examines how loan guarantees may shape the efficiency through which resources are allocated across firms of different productivity levels over the medium-term. Results suggest that, over the 2007-2018 period, increases in large-scale loan guarantee schemes were associated with weaker reallocation of credit and labour from low to high productivity firms. However, these effects are found to be more benign in intangible-intensive sectors and even positive for smaller scale programmes. Overall, engineering an effective exit strategy from these schemes, preserving their benefits while reducing their drawbacks through a gradual and state contingent phasing out, is critical to foster the recovery of the corporate sector. Further, monitoring debt overhang risks and facilitating firms' entry and digital diffusion are relevant complementary challenges to address once COVID-19 related support is withdrawn. |
| Beschreibung: | 1 Online-Ressource (47 p.) 21 x 28cm. |
| DOI: | 10.1787/2f4a4c20-en |
Internformat
MARC
| LEADER | 00000cam a22000002 4500 | ||
|---|---|---|---|
| 001 | ZDB-13-SOC-072589612 | ||
| 003 | DE-627-1 | ||
| 005 | 20231204121408.0 | ||
| 007 | cr uuu---uuuuu | ||
| 008 | 220114s2021 xx |||||o 00| ||eng c | ||
| 024 | 7 | |a 10.1787/2f4a4c20-en |2 doi | |
| 035 | |a (DE-627-1)072589612 | ||
| 035 | |a (DE-599)KEP072589612 | ||
| 035 | |a (FR-PaOEC)2f4a4c20-en | ||
| 035 | |a (EBP)072589612 | ||
| 040 | |a DE-627 |b ger |c DE-627 |e rda | ||
| 041 | |a eng | ||
| 084 | |a J38 |2 jelc | ||
| 084 | |a O47 |2 jelc | ||
| 084 | |a H81 |2 jelc | ||
| 084 | |a D22 |2 jelc | ||
| 084 | |a D24 |2 jelc | ||
| 100 | 1 | |a Demmou, Lilas |e VerfasserIn |4 aut | |
| 245 | 1 | 0 | |a From hibernation to reallocation: Loan guarantees and their implications for post-COVID-19 productivity |c Lilas, Demmou and Guido, Franco |
| 264 | 1 | |a Paris |b OECD Publishing |c 2021 | |
| 300 | |a 1 Online-Ressource (47 p.) |c 21 x 28cm. | ||
| 336 | |a Text |b txt |2 rdacontent | ||
| 337 | |a Computermedien |b c |2 rdamedia | ||
| 338 | |a Online-Ressource |b cr |2 rdacarrier | ||
| 490 | 0 | |a OECD Economics Department Working Papers |v no.1687 | |
| 520 | |a The paper analyses the role of loan guarantee programmes following the COVID-19 outbreak in alleviating firm distress as well as their broader impacts on productivity via reallocation, relying on a simulation model and econometric estimations. The simulation exercise relies on a simple cash-flow accounting model, a large dataset reporting balance sheets of firms located in 14 countries and granular data on the magnitude of the COVID-19 shock. Our findings suggest that i) the COVID-19 shock had the potential to seriously distort market selection; and ii) policy actions corrected up to 30% of the inefficiency of market selection in the short-term, shielding many high productive firms from distress and supporting zombie firms only to a limited extent. The econometric exercise, based on historical data and standard models of dynamic allocative efficiency, examines how loan guarantees may shape the efficiency through which resources are allocated across firms of different productivity levels over the medium-term. Results suggest that, over the 2007-2018 period, increases in large-scale loan guarantee schemes were associated with weaker reallocation of credit and labour from low to high productivity firms. However, these effects are found to be more benign in intangible-intensive sectors and even positive for smaller scale programmes. Overall, engineering an effective exit strategy from these schemes, preserving their benefits while reducing their drawbacks through a gradual and state contingent phasing out, is critical to foster the recovery of the corporate sector. Further, monitoring debt overhang risks and facilitating firms' entry and digital diffusion are relevant complementary challenges to address once COVID-19 related support is withdrawn. | ||
| 650 | 4 | |a Economics | |
| 700 | 1 | |a Franco, Guido |e MitwirkendeR |4 ctb | |
| 856 | 4 | 0 | |l FWS01 |p ZDB-13-SOC |q FWS_PDA_SOC |u https://doi.org/10.1787/2f4a4c20-en |3 Volltext |
| 912 | |a ZDB-13-SOC | ||
| 912 | |a ZDB-13-SOC | ||
| 951 | |a BO | ||
| 912 | |a ZDB-13-SOC | ||
| 049 | |a DE-863 | ||
Datensatz im Suchindex
| DE-BY-FWS_katkey | ZDB-13-SOC-072589612 |
|---|---|
| _version_ | 1816797324665421825 |
| adam_text | |
| any_adam_object | |
| author | Demmou, Lilas |
| author2 | Franco, Guido |
| author2_role | ctb |
| author2_variant | g f gf |
| author_facet | Demmou, Lilas Franco, Guido |
| author_role | aut |
| author_sort | Demmou, Lilas |
| author_variant | l d ld |
| building | Verbundindex |
| bvnumber | localFWS |
| collection | ZDB-13-SOC |
| ctrlnum | (DE-627-1)072589612 (DE-599)KEP072589612 (FR-PaOEC)2f4a4c20-en (EBP)072589612 |
| discipline | Wirtschaftswissenschaften |
| doi_str_mv | 10.1787/2f4a4c20-en |
| format | Electronic eBook |
| fullrecord | <?xml version="1.0" encoding="UTF-8"?><collection xmlns="http://www.loc.gov/MARC21/slim"><record><leader>03039cam a22004092 4500</leader><controlfield tag="001">ZDB-13-SOC-072589612</controlfield><controlfield tag="003">DE-627-1</controlfield><controlfield tag="005">20231204121408.0</controlfield><controlfield tag="007">cr uuu---uuuuu</controlfield><controlfield tag="008">220114s2021 xx |||||o 00| ||eng c</controlfield><datafield tag="024" ind1="7" ind2=" "><subfield code="a">10.1787/2f4a4c20-en</subfield><subfield code="2">doi</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(DE-627-1)072589612</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(DE-599)KEP072589612</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(FR-PaOEC)2f4a4c20-en</subfield></datafield><datafield tag="035" ind1=" " ind2=" "><subfield code="a">(EBP)072589612</subfield></datafield><datafield tag="040" ind1=" " ind2=" "><subfield code="a">DE-627</subfield><subfield code="b">ger</subfield><subfield code="c">DE-627</subfield><subfield code="e">rda</subfield></datafield><datafield tag="041" ind1=" " ind2=" "><subfield code="a">eng</subfield></datafield><datafield tag="084" ind1=" " ind2=" "><subfield code="a">J38</subfield><subfield code="2">jelc</subfield></datafield><datafield tag="084" ind1=" " ind2=" "><subfield code="a">O47</subfield><subfield code="2">jelc</subfield></datafield><datafield tag="084" ind1=" " ind2=" "><subfield code="a">H81</subfield><subfield code="2">jelc</subfield></datafield><datafield tag="084" ind1=" " ind2=" "><subfield code="a">D22</subfield><subfield code="2">jelc</subfield></datafield><datafield tag="084" ind1=" " ind2=" "><subfield code="a">D24</subfield><subfield code="2">jelc</subfield></datafield><datafield tag="100" ind1="1" ind2=" "><subfield code="a">Demmou, Lilas</subfield><subfield code="e">VerfasserIn</subfield><subfield code="4">aut</subfield></datafield><datafield tag="245" ind1="1" ind2="0"><subfield code="a">From hibernation to reallocation: Loan guarantees and their implications for post-COVID-19 productivity</subfield><subfield code="c">Lilas, Demmou and Guido, Franco</subfield></datafield><datafield tag="264" ind1=" " ind2="1"><subfield code="a">Paris</subfield><subfield code="b">OECD Publishing</subfield><subfield code="c">2021</subfield></datafield><datafield tag="300" ind1=" " ind2=" "><subfield code="a">1 Online-Ressource (47 p.)</subfield><subfield code="c">21 x 28cm.</subfield></datafield><datafield tag="336" ind1=" " ind2=" "><subfield code="a">Text</subfield><subfield code="b">txt</subfield><subfield code="2">rdacontent</subfield></datafield><datafield tag="337" ind1=" " ind2=" "><subfield code="a">Computermedien</subfield><subfield code="b">c</subfield><subfield code="2">rdamedia</subfield></datafield><datafield tag="338" ind1=" " ind2=" "><subfield code="a">Online-Ressource</subfield><subfield code="b">cr</subfield><subfield code="2">rdacarrier</subfield></datafield><datafield tag="490" ind1="0" ind2=" "><subfield code="a">OECD Economics Department Working Papers</subfield><subfield code="v">no.1687</subfield></datafield><datafield tag="520" ind1=" " ind2=" "><subfield code="a">The paper analyses the role of loan guarantee programmes following the COVID-19 outbreak in alleviating firm distress as well as their broader impacts on productivity via reallocation, relying on a simulation model and econometric estimations. The simulation exercise relies on a simple cash-flow accounting model, a large dataset reporting balance sheets of firms located in 14 countries and granular data on the magnitude of the COVID-19 shock. Our findings suggest that i) the COVID-19 shock had the potential to seriously distort market selection; and ii) policy actions corrected up to 30% of the inefficiency of market selection in the short-term, shielding many high productive firms from distress and supporting zombie firms only to a limited extent. The econometric exercise, based on historical data and standard models of dynamic allocative efficiency, examines how loan guarantees may shape the efficiency through which resources are allocated across firms of different productivity levels over the medium-term. Results suggest that, over the 2007-2018 period, increases in large-scale loan guarantee schemes were associated with weaker reallocation of credit and labour from low to high productivity firms. However, these effects are found to be more benign in intangible-intensive sectors and even positive for smaller scale programmes. Overall, engineering an effective exit strategy from these schemes, preserving their benefits while reducing their drawbacks through a gradual and state contingent phasing out, is critical to foster the recovery of the corporate sector. Further, monitoring debt overhang risks and facilitating firms' entry and digital diffusion are relevant complementary challenges to address once COVID-19 related support is withdrawn.</subfield></datafield><datafield tag="650" ind1=" " ind2="4"><subfield code="a">Economics</subfield></datafield><datafield tag="700" ind1="1" ind2=" "><subfield code="a">Franco, Guido</subfield><subfield code="e">MitwirkendeR</subfield><subfield code="4">ctb</subfield></datafield><datafield tag="856" ind1="4" ind2="0"><subfield code="l">FWS01</subfield><subfield code="p">ZDB-13-SOC</subfield><subfield code="q">FWS_PDA_SOC</subfield><subfield code="u">https://doi.org/10.1787/2f4a4c20-en</subfield><subfield code="3">Volltext</subfield></datafield><datafield tag="912" ind1=" " ind2=" "><subfield code="a">ZDB-13-SOC</subfield></datafield><datafield tag="912" ind1=" " ind2=" "><subfield code="a">ZDB-13-SOC</subfield></datafield><datafield tag="951" ind1=" " ind2=" "><subfield code="a">BO</subfield></datafield><datafield tag="912" ind1=" " ind2=" "><subfield code="a">ZDB-13-SOC</subfield></datafield><datafield tag="049" ind1=" " ind2=" "><subfield code="a">DE-863</subfield></datafield></record></collection> |
| id | ZDB-13-SOC-072589612 |
| illustrated | Not Illustrated |
| indexdate | 2024-11-26T14:55:46Z |
| institution | BVB |
| language | English |
| open_access_boolean | |
| owner | DE-863 DE-BY-FWS |
| owner_facet | DE-863 DE-BY-FWS |
| physical | 1 Online-Ressource (47 p.) 21 x 28cm. |
| psigel | ZDB-13-SOC |
| publishDate | 2021 |
| publishDateSearch | 2021 |
| publishDateSort | 2021 |
| publisher | OECD Publishing |
| record_format | marc |
| series2 | OECD Economics Department Working Papers |
| spelling | Demmou, Lilas VerfasserIn aut From hibernation to reallocation: Loan guarantees and their implications for post-COVID-19 productivity Lilas, Demmou and Guido, Franco Paris OECD Publishing 2021 1 Online-Ressource (47 p.) 21 x 28cm. Text txt rdacontent Computermedien c rdamedia Online-Ressource cr rdacarrier OECD Economics Department Working Papers no.1687 The paper analyses the role of loan guarantee programmes following the COVID-19 outbreak in alleviating firm distress as well as their broader impacts on productivity via reallocation, relying on a simulation model and econometric estimations. The simulation exercise relies on a simple cash-flow accounting model, a large dataset reporting balance sheets of firms located in 14 countries and granular data on the magnitude of the COVID-19 shock. Our findings suggest that i) the COVID-19 shock had the potential to seriously distort market selection; and ii) policy actions corrected up to 30% of the inefficiency of market selection in the short-term, shielding many high productive firms from distress and supporting zombie firms only to a limited extent. The econometric exercise, based on historical data and standard models of dynamic allocative efficiency, examines how loan guarantees may shape the efficiency through which resources are allocated across firms of different productivity levels over the medium-term. Results suggest that, over the 2007-2018 period, increases in large-scale loan guarantee schemes were associated with weaker reallocation of credit and labour from low to high productivity firms. However, these effects are found to be more benign in intangible-intensive sectors and even positive for smaller scale programmes. Overall, engineering an effective exit strategy from these schemes, preserving their benefits while reducing their drawbacks through a gradual and state contingent phasing out, is critical to foster the recovery of the corporate sector. Further, monitoring debt overhang risks and facilitating firms' entry and digital diffusion are relevant complementary challenges to address once COVID-19 related support is withdrawn. Economics Franco, Guido MitwirkendeR ctb FWS01 ZDB-13-SOC FWS_PDA_SOC https://doi.org/10.1787/2f4a4c20-en Volltext |
| spellingShingle | Demmou, Lilas From hibernation to reallocation: Loan guarantees and their implications for post-COVID-19 productivity Economics |
| title | From hibernation to reallocation: Loan guarantees and their implications for post-COVID-19 productivity |
| title_auth | From hibernation to reallocation: Loan guarantees and their implications for post-COVID-19 productivity |
| title_exact_search | From hibernation to reallocation: Loan guarantees and their implications for post-COVID-19 productivity |
| title_full | From hibernation to reallocation: Loan guarantees and their implications for post-COVID-19 productivity Lilas, Demmou and Guido, Franco |
| title_fullStr | From hibernation to reallocation: Loan guarantees and their implications for post-COVID-19 productivity Lilas, Demmou and Guido, Franco |
| title_full_unstemmed | From hibernation to reallocation: Loan guarantees and their implications for post-COVID-19 productivity Lilas, Demmou and Guido, Franco |
| title_short | From hibernation to reallocation: Loan guarantees and their implications for post-COVID-19 productivity |
| title_sort | from hibernation to reallocation loan guarantees and their implications for post covid 19 productivity |
| topic | Economics |
| topic_facet | Economics |
| url | https://doi.org/10.1787/2f4a4c20-en |
| work_keys_str_mv | AT demmoulilas fromhibernationtoreallocationloanguaranteesandtheirimplicationsforpostcovid19productivity AT francoguido fromhibernationtoreallocationloanguaranteesandtheirimplicationsforpostcovid19productivity |