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Publications [#320576] of Francesco Bianchi

Journal Articles

  1. Bianchi, F; Kung, H; Morales, G, Growth, slowdowns, and recoveries, Journal of Monetary Economics, vol. 101 no. 184 (January, 2019), pp. 47-63, Elsevier BV [doi]
    (last updated on 2019/07/19)

    © 2018 Elsevier B.V. We construct and estimate an endogenous growth model with debt and equity financing frictions to understand the relation between business cycle fluctuations and long-term growth. The presence of spillover effects from R&D imply an endogenous relation between productivity growth and the state of the economy. A large contractionary shock to equity financing in the 2001 recession led to a persistent growth slowdown that was more severe than in the 2008 recession. Equity (debt) financing shocks are more important for explaining R&D (physical) investment. Therefore, these two financing shocks affect the economy over different horizons.

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