Plausibly Exogenous [1600] - Arrears (06/20/2024)

LHS Variable
Corporate investment

RHS Variable
Repayment of accumulated arrears

Source of Exogenous Variation
large-scale financing plan of the Spanish government in 2012 that repays accumulated arrears of local governments to their suppliers (amounting to about 3% of Spain's GDP)

- Abad et al. (2023), “Government Arrears and Corporate Decisions: Lessons from a Natural Experiment”