Spillover Effects in Empirical Corporate Finance

Tobias Berg, Markus Reisinger, Daniel Streitz

Publikation: Working paperForskning

Abstrakt

Despite their importance, the discussion of spillover effects in empirical research often misses the rigor dedicated to endogeneity concerns. We analyze a broad set of workhorse models of firm interactions and show that spillovers naturally arise in many corporate finance settings. This has important implications for the estimation of treatment effects: i) even with random treatment, spillovers lead to a complicated bias, ii) fixed effects can exacerbate the spillover-induced bias. We propose simple diagnostic tools for empirical researchers and illustrate our guidance in an application.
OriginalsprogEngelsk
UdgivelsesstedLondon
UdgiverCentre for Economic Policy Research
Antal sider58
StatusUdgivet - dec. 2020
NavnCentre for Economic Policy Research. Discussion Papers
NummerDP15549
ISSN0265-8003

Emneord

  • Spillovers
  • Direct vs. indirect effects
  • Credit supply

Citationsformater