Estimados Académicos y Académicas FEN,

Les extendemos la invitación al seminario que organiza el Departamento de Economía, en el que se presentará el trabajo titulado "Relationship Lending: Characteristics and Real Effects".

Expone: Miguel Acosta, Economista Senior, Departamento de Análisis Económico, Gerencia de Estudios Económicos, División de Política Monetaria del Banco Central de Chile.

Abstract: Using confidential credit registry data, merged with firm tax records in Chile, we evaluate the macroeconomic consequences of relationship lending. We find that longer relationships between banks and firms give firms access to more credit at better terms, and that more productive and larger firms have stronger relationships with banks. We find no systematic evidence of evergreening. We build a dynamic model of firm behavior where firms choose to borrow within relationships or in arms-length transactions jointly with their investment and borrowing decisions. Calibrating the model to Chilean data, we find that borrowing in relationships is characterized by lower collateral requirements and looser working capital constraints, but greater contract enforceability. Counterfactual experiments indicate that the effects of relationship lending are large. Eliminating relationship lending implies a loss of more than 40 percent in steady state output and capital, of which the most significant loss comes from the reduction in the banks’ ability to enforce the debt contract and repossess a greater fraction of firms’ assets in case of default.

El formato será presencial y el seminario se desarrollará en la Sala P-305.

Saludos cordiales,

Dirección de Investigación