State dependence in access to credit

• We investigate if firms’ access to credit is characterized by state dependence. • We introduce a first-order Markov model of credit restriction with sample selection to identify state dependence in the presence of unobserved heterogeneity. • Results on a sample of Italian firms show that state dep...
Ausführliche Beschreibung

• We investigate if firms’ access to credit is characterized by state dependence. • We introduce a first-order Markov model of credit restriction with sample selection to identify state dependence in the presence of unobserved heterogeneity. • Results on a sample of Italian firms show that state dependence in access to credit is a statistically and economically significant phenomenon. Ausführliche Beschreibung