The impact of financial constraints on innovation : evidence from French manufacturing firms

This paper examines the impact of financial constraints on innovation for established firms. We make use of a qualitative indicator of the existence of financial constraints based on firms' own assessment obtained thanks to a French specific survey. Thus, the existence of financial constraints for innovation is measured by a direct indicator whereas previous studies rely on proxies (like the cash-flow sensitivity) subject to interpretation problems. The descriptive analysis of balance sheet structures reveals that innovative firms without financial constraints have the best profile in terms of economic performances, financing structure and risk whereas non innovative firms facing financial constraints have the poorest profile. From the econometric point of view, the probabilities of implementing innovative projects and of facing financial constraints are simultaneously estimated by a recursive bivariate probit model to account for the endogeneity of the financial constraint variable. We then find that firms having innovative projects face financial constraints that significantly reduce the likelihood that they implement their innovative investment. The probability of facing financing constraints is explained by firms' ex ante financing structure and economic performances, by industry sector and it decreases with firms' size.Innovation, financing constraints, recursive bivariate probit.

The impact of financial constraints on innovation: What can be learned from a direct measure?

This paper examines the impact of financial constraints on innovation for established firms. We make use of a direct measure of the existence of financial constraints obtained thanks to a specific survey addressed to French established firms (FIT, Sessi). This is a distinctive feature of this paper as most of previous studies had to rely on proxies (like the cash-flow sensitivity) which may be subject to interpretation problems. The probability to have innovative activities and the probability to face financial constraints are simultaneously estimated by a recursive bivariate probit model. Accounting for the endogeneity of the financial constraint variable, we find that financial constraints significantly reduce the likelihood that firms have innovative activities. The probability to encounter financial constraints is explained by firms' ex ante financing structure and economic performances.Innovation ; Financing constraints ; Recursive bivariate probit.

Financing constraints and a firm's decision and ability to innovate: establishing direct and reverse effects

The paper analyzes the existence and impact of …nancing constraints as a possibly serious obstacle to innovation by …rms. Direct measures of …nancing constraints are employed using survey data collected by the Banque de France and Eurostat, which overcomes the problems with the traditional approach of trying to deduce indirectly the existence and impact of …nancing constraints through the signi…cance of …rm wealth variables. The importance of using direct as opposed to indirect measures of …nancing constraints has been illustrated recently by two articles in this Journal (Moyen (2004) using a synthetic sample methodology, and Hennessy and Whited (2007) through the method of simulated moments). The econometric framework we employ in our study is the simultaneous bivariate probit with mutual endogeneity of direct indicators of …nancial constraints and innovation decisions by …rms. The pa- per discusses the important identi…cation issue of coherency conditions in such LDV models with endogeneity and ‡exible temporal and contemporaneous correlations in the unobservable error terms. Our novel methods for establishing coherency condi- tions allow us for the …rst time to estimate models hitherto classi…ed as incoherent through the use of prior sign restrictions on model parameters. We are thus able to quantify the interaction between …nancing constraints and a …rm’s decision and ability to innovate without forcing the econometric models to be recursive. Hence, we obtain direct as well as reverse interaction e¤ects, leading us to conclude that binding …nancing constraints discourage innovation and at the same time innovative …rms are more likely to face binding …nancing constraints

Stockholding: Does housing wealth matter?

The existence of an equity premium puzzle has been largely emphasized in the empirical literature: one observes low risky assets holding that the standard portfolio choice model (with expected and discounting utility and homothetic preferences) is not able to explain. Besides modifications of rationality assumptions, other changes have been introduced in the standard framework to account for this equity premium puzzle: the existence of transaction costs, liquidity constraints or other risks (e.g. risks associated with employment, income, health,). These background risks (i.e. risks that are unavoidable, exogenous and independent from the financial market risk) may lead households to reduce their stockownership in order to limit their global exposure to risk. Recent developments examine the role of housing on stockholding as another background risk. This paper analyses the empirical link between stockholding and housing wealth within this framework. We use the French wealth survey (Enquête Patrimoine 2004, Insee) that gives us detailed information on households portfolio, socio-demographic variables, and several measures of preference and exposition to various risks (income, unemployment, health, and business). We find that an increase in the housing to net wealth ratio crowds out stock market investment for a given total financial wealth: when facing real estate exposure to risk, households tend to moderate their global exposure to risk by limiting the share of their financial wealth invested in stocks. Among the other significant determinants of the equity premium puzzle, we emphasize the role of transaction and information costs, the attitude toward risk and the exposition to various risks in hampering investments in stocks.Portfolio choice , background risks , housing demand , life-cycle model.

Financing Constraints and a Firm's Decision and Ability to Innovate: Establishing Direct and Reverse Effects.

The paper analyzes the existence and impact of financing constraints as a possibly serious obstacle to innovation by .rms. The econometric framework we employ in our study is the simultaneous bivariate probit with mutual endogeneity of direct indicators of financial constraints and innovation decisions by firms. A novel method for establishing coherency conditions is used. It allows us for the first time to estimate models hitherto classified as incoherent through the use of prior sign restrictions on model parameters. We are thus able to quantify the interaction between financing constraints and a firm's decision and ability to innovate without forcing the econometric models to be recursive. Hence, we obtain direct as well as reverse interaction effects, leading us to conclude that binding financing constraints discourage innovation and at the same time innovative firms are more likely to face binding financing constraints.DSGE model ; Currency union ; Heterogeneity ; Matching frictions ; Welfare.

Is There a Bank lending Channel in France? Evidence From Bank Panel Data.

The aim of this paper is to check the possible existence of a bank lending channel in France. For that purpose, we have estimated a dynamic reduced form model allowing for asymmetries in loan supply across banks, depending on their size, liquidity and capitalization. We have used a panel of 312 French banks observed quarterly over the period 1993-2000. We find some asymmetry between liquid and illiquid banks, the latter being more sensitive to a monetary policy tightening. This result is in accordance with that obtained for several other countries of the Euro area. It constitutes an indication that, as far as they can, French banks sell part of their liquid assets in order to shield their loan portfolio from the effects of increases in the interest rate. Contrary to what has been found for the US (e.g., see Kashyap and Stein (1995, 2000) and Kishan and Opiela (2000)), we do not find the two other banks' characteristics we consider (size and capitalization) to have any significant impact on bank lending.Monetary policy; Credit channel.

Wealth Effects on Consumption Plans: French Households in the Crisis

This paper analyzes the wealth effect on consumption in France by relying on two original household surveys. First, it provides the first estimate of the marginal propensity to consume out of wealth based on micro data for France (Enquête Patrimoine 2009, Insee): a low but significant wealth effect is obtained and financial wealth seems to be significant only for stockholders. Second, it studies how French households have adapted their consumption plans during the 2008-2009 crisis by relying on household self-assessed changes in future consumption (survey PATER). Besides the direct wealth effect, our results confirm the role played by changes in expectations on consumption plans, and thus, by the confidence channel as an additional transmission mechanism of the crisis.wealth effect, housing and financial wealth, consumption, household survey, expectations.

Influence of the ionic composition on the diffusion mass transfer of saccharides through a cation-exchange membrane

Recent studies have pointed out that the presence of salts can change significantly the membrane process performances because of the resulting modification of the neutral solutes transfer through the membrane. The influence of the ionic composition on the transfer of neutral solutes through membranes could be explained by a modification of the membrane properties, due to electrostatic effects, by a modification of the solute radius, likely due to its dehydration induced by the electrolyte, or more probably by a combination of both. This study deals with the investigation of the mechanisms governing the mass transfer of neutral species through an ion-exchange membrane used in electrodialysis, CMX, with a focus on the role of ions. The mass transfer of various saccharides (xylose,glucose and sucrose) as well as the solvent transfer in different electrolytic solutions (NaCl,NH 4Cl, CaCl 2 and MgCl 2) was studied in a diffusion regime. A specific procedure has been used to dissociate the solvent or solute fluxes variations due to the modifications of the solute properties and of the membrane material induced by the electrolyte. The results showed that the transfer modification is mainly due to the influence of the electrolyte on the membrane properties, which is fixed by the membrane soaking. A quantitative correlation has been established between the solvent and solute transfer and the hydration number of the membrane counterion. In presence of electrolyte, the saccharide mass transfer increased but the impact of the presence of electrolyte is much less than the one of membrane soaking. However, in this case, a relationship has been also established between the increase of the saccharide mass transfer and the cation hydration state

Delito contra la Seguridad Vial. Artículo 379.2 del Código Penal

27 páginasTrabajo fin Curso de Experto. Tutora: María Itziar Giménez Sánchez. Estudio de caso: Se requiere la emisión de dictamen sobre las posibilidades de impugnación de las pruebas realizadas para la detección de alcohol a los implicados en un accidente de tráfico, referido al siguiente supuesto: Juan, español residente desde hace 6 años en los Países Bajos, vuelve a Málaga de visita durante sus vacaciones de Verano. Sobre las 02 horas, del 27 de Julio de 2011, mientras conduce su vehículo por el Paseo Marítimo Antonio Machado de Málaga, que se halla en obras, colisiona con el vehículo que le precede, conducido por Antonio. Requerida la presencia de la policía local y de una ambulancia del 061, se practica in situ prueba de detección de alcohol en aire espirado a Antonio, mientras que Juan es trasladado por la ambulancia al Centro Hospitalario Carlos Haya de Málaga debido a las heridas que presenta. Agentes de la Policía Local se personan a las 04 h en el centro hospitalario para interesar prueba de detección de alcohol en sangre mediante extracción de sangre

The Not-So Dramatic Effect of Advective Flows on Gas Accretion

Super-Earths and mini-Neptunes are the most common types of exoplanets discovered, yet the physical scenarios behind their formation are still debated. Standard core accretion models in gas-rich environment find that typical mini-Neptune mass planets would blow up into Jupiters before the underlying disk gas dissipates away. The injection of entropy from the protoplanetary disk into forming gaseous envelopes has recently been put forward as a mechanism to delay this runaway accretion, specifically at short orbital distances. Here, we reevaluate this line of reasoning by incorporating recycling flows of gas into a numerical one-dimensional thermodynamic model with more realistic equation of state and opacities and the thermal state of the advective flow. At 0.1 AU, unless these advective flows can penetrate below $\sim$0.2 of the planet's gravitational sphere of influence, the gas-to-core mass ratio (GCR) stays above $\sim$10% before the nebular disk dissipates which is still too large to explain the measured properties of mini-Neptunes, necessitating other gas-limiting processes such as late-time core assembly. The effect of entropy advection on gas accretion weakens even further at wider orbital separations. We present an updated scaling relation between GCR and the penetration depth of the advective flows which varies non-trivially with orbital distances, core masses and dusty vs.~dust-free opacity. We further demonstrate how measurements of planet mass distribution beyond $\sim$1 AU can be used to disambiguate between different formation conditions of gas-poor planets.Comment: 16 pages, 9 figures. Submitted to ApJ. Comments welcome