CEPR Discussion Paper – International Financial Flows and Misallocation: Evidence from Micro Data

Author(s): Federico Cingano, Fadi Hassan Date: April 2022 Abstract: Using detailed bank-firm matched data, we study the impact of international financial flows on misallocation. We exploit a boom of capital inflows in Italy and identify the patterns of credit allocation by banks with different exposure to such boom. We find that exposed banks tilt credit[…]