Investment during the Korean financial crisis
Subtitle: a structural econometric analysis
By: Simon Gilchrist, Jae W. Sim
Contributors: Sim, Jae W.; National Bureau of Economic Research
Series: NBER working paper series -- working paper 13315; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13315.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] :
Description: "This paper uses firm-level panel data to analyze the role of financial factors in determining investment outcomes during the Korean financial crisis.  Our identification strategy exploits the presence of foreign-denominated debt to measure shocks to the financial position of firms following the devaluation that occurred during the crisis period.  Structural parameter estimates imply that financial factors may account for 50% to 80% of the overall drop in investment observed during this episode.  Our estimates also imply that foreign-denominated debt had relatively little effect on aggregate investment spending.  Counterfactual experiments suggest sizeable contractions in investment through this mechanism for economies that are more heavily dependent on foreign-denominated debt however"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 8/28/2007.

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