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Replication data for: Corporate Cash and Employment

Resource Type
  • Bacchetta, Philippe
  • Benhima, Kenza
  • Poilly, Céline
Publication Date
  • Abstract

    In the aftermath of the US financial crisis, both a sharp drop in employment and a surge in corporate cash have been observed. In this paper, based on US data, we argue that the negative relationship between the corporate cash ratio and employment is systematic, both over time and across firms. We develop a dynamic general equilibrium model where heterogenous firms need cash and external liquid funds in their production process. We analyze the dynamic impact of aggregate shocks and the cross-firm impact of idiosyncratic shocks. We show that external liquidity shocks generate a negative comovement between the cash ratio and employment, as documented in the data.
  • Is supplement to
    DOI: 10.1257/mac.20150191 (Text)
  • Bacchetta, Philippe, Kenza Benhima, and Céline Poilly. “Corporate Cash and Employment.” American Economic Journal: Macroeconomics 11, no. 3 (July 2019): 30–66.
    • ID: 10.1257/mac.20150191 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07

Bacchetta, Philippe; Benhima, Kenza; Poilly, Céline (2019): Replication data for: Corporate Cash and Employment. Version: V0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset.