Research Grant from Riksbankens Jubileumsfond

2017-11-01

The research project "Financial Crises and Firms’ Employment Behaviour: Lessons from the Swedish Banking Crisis" receives 4.2 million from Riksbankens Jubileumsfond. The project is chaired by Hans Grönqvist Associate Professor at the Department of Economics.

Hans Grönqvist

Other project participants are Julien Grenet, Associate Professor at the Paris School of Economics and Daniel Jahnson PhD Student the Department of Economics.

- The banking crisis which hit the Swedish economy in the early 1990s has gained an increased interest from policy commentators, as it provides an insightful, yet previously unexplored, case study both with high relevance to improve our understanding of global financial crises and to suggest effective resolution strategies.

The aim of this research project is to use the Swedish experience to shed light on important aspects of the current economic downturn: namely the mechanisms through which credit constraints affect firms’ employment and wage decisions and its consequences in the long run. More specifically, we use the banking crisis to investigate whether firms that are more heavily dependent on external capital to finance their operations experience stronger employment adjustments in the presence of reduced borrowing opportunities than firms which are less dependent on external sources of financing, says Hans Grönqvist.

For further information please see Riksbankens Jubileumsfond's website

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