House prices, collateral, and self-employment
Name
Schoar_House Prices Collateral and Self Employment.pdf
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439.26 KB
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Adobe PDF
Checksum (MD5)
653abcd03c91ffb3770c13bd93fc070b
Author(s)
Adelino, Manuel
Schoar, Antoinette
Severino, Felipe
Date Issued
April 2015
Journal
Journal of Financial Economics
Publisher
Elsevier BV
Citation
Adelino, Manuel et al. “House Prices, Collateral, and Self-Employment.” Journal of Financial Economics 117, 2 (August 2015): 288–306 © 2015 Elsevier B.V.
Version
Original manuscript
Abstract
We show the importance of the collateral lending channel for small business employment over the past decade. Small businesses in areas with greater increases in house prices experienced stronger growth in employment than large firms in the same areas and industries. To identify the role of the collateral lending channel separately from aggregate changes in demand, we show that this effect is more pronounced in industries that need little start-up capital and in which housing collateral is more important. This increase is also present in manufacturing industries, particularly those that ship goods over long distances. In aggregate, the collateral lending channel explains 15-25% of employment variation. Keywords: Housing; Collateral; Self-employment; Entrepreneurship; Small business
MIT Department
Massachusetts Institute of Technology. Department of Economics
Sloan School of Management
Terms of Use
Creative Commons Attribution-NonCommercial-NoDerivs License
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1016/J.JFINECO.2015.03.005
