NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Firms' Management of Infrequent Shocks

Benjamin L. Collier, Andrew F. Haughwout, Howard C. Kunreuther, Erwann O. Michel-Kerjan, Michael A. Stewart

NBER Working Paper No. 22612
Issued in September 2016, Revised in April 2017
NBER Program(s):PE

We examine businesses’ financial management of a rare, severe event using detailed firm-level data collected following Hurricane Sandy in the New York area. Credit played a prominent role in financing recovery; more negatively affected firms took on debt because of Sandy (38%) than received insurance payments (15%) in our data. Negatively affected firms were often credit constrained after the shock. While firms’ demand for insurance is often explained by financing frictions, we find that the most credit constrained firms after the event, younger firms and smaller firms, were the least likely to insure before it.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Access to NBER Papers

You are eligible for a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w22612

Users who downloaded this paper also downloaded* these:
Diebold, Schorfheide, and Shin w22615 Real-Time Forecast Evaluation of DSGE Models with Stochastic Volatility
Cohen, Hahn, Hall, Levitt, and Metcalfe w22627 Using Big Data to Estimate Consumer Surplus: The Case of Uber
Gow, Kaplan, Larcker, and Zakolyukina w22435 CEO Personality and Firm Policies
Kehoe, Pastorino, and Midrigan w22614 Debt Constraints and Employment
Santos and Barrett w22626 Heterogeneous Wealth Dynamics: On the Roles of Risk and Ability
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us