Degree Type

Dissertation

Date of Award

2020

Degree Name

Doctor of Philosophy

Department

Economics

Major

Economics

First Advisor

Otávio Bartalotti

Abstract

This dissertation includes three chapters that cover broad topics in economics. The first chapter explores how the US Government's Capital Purchase Program, a large capital injection to local and regional banks through a stock purchase agreement, impacted local establishment dynamics such as entry, exit, employment expansion, and employment contraction following the 2008 Financial Crisis. The Capital Purchase Program dispersed over \$200 billion dollars to banks hoping to prevent failure and ease tightened lending conditions. I estimate the direct effects of a county having a bank receive Capital Purchase Program funds on local business dynamics in the seven years following treatment, as well as spillover effects as entrepreneurs and business in neighboring regions travel to gain access to credit. Estimates show the CPP had no effect on establishment entry and exit, nor employment expansion and contraction. This paper establishes that the business-lending aims of the CPP were not realized in the communities and regions that received funds, and casts further doubt on meaningful pass through of CPP funds to desirable local economic activity.

DOI

https://doi.org/10.31274/etd-20200902-41

Copyright Owner

Kevin Davey Duncan

Language

en

File Format

application/pdf

File Size

164 pages

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