Maddalena Galardo (LUISS)

Mer, 02/15/2017 - 12:00 / 13:30

404a, Viale Romania, 32

Speaker: Maddalena Galardo , LUISS

  • Title:  Social Capital, Uncertainty and Credit Supply: Evidence from the Global Crisis (with M. Lozzi  (Bank of Italy)  and PE Mistrulli (Bank of Italy))
  • Abstract:  A large number of papers have investigated how the recent crisis affected the credit market. However, the literature is still silent on the role played by social capital During the crisis. This contrasts with the view That social capital is a key factor Affecting the functioning of financial markets. In this paper we fill this gap and investigate Whether social capital has played a role in mitigating the effects of the recent crisis on credit supply. To this aim, we displayed the probability of approving loan requests lodged` by over half a million of Italian non-financial corporations before and after Lehman's default. We Find That firms headquartered in the high-social capital provinces Suffered less from the global crisis. This result is consistent with the view That company ca