Plausibly Exogenous [955] - Arrears (09/10/2022)
LHS Variable
Firm investment and liquidity
RHS Variable
Repayment of accumulated arrears
Source of Exogenous Variation
A large-scale financing plan of the Spanish central government in 2012 that repaid the accumulated arrears of local governments to their suppliers, during which some firms were accidentally left out of the first phase of the program and were repaid a year later
- Abad et al. (2022), “Government Arrears and Corporate Decisions: Lessons from a Natural Experiment”