NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...




As Pandemic Unfolded, US Companies
Raised Cash and Drew Down Credit Lines

337

In March 2020, as the COVID-19 pandemic roiled both financial markets and the real economy, US companies increased their cash holdings, in part by drawing down bank credit lines. Research Associate Viral Acharya and Sascha Steffen document these patterns in a new working paper (27601). They attribute the dash for cash to a concern among managers that their firm's credit rating would be downgraded on account of pandemic-related business disruption, and that it would become more expensive or even impossible to raise cash after that. Acharya summarizes these findings in the short video above.

Seven NBER working papers distributed this week examine the economic impact of the COVID-19 pandemic and analyze various policy responses to it. The studies investigate the design of optimal pandemic mitigation policies (27741, 27742, 27757), explore how monetary policy forward guidance may operate in a pandemic setting (27748), describe how a pandemic-related reduction in revenue from high-profile college sports may affect other components of college athletics (27734), document the heterogeneity in the pandemic’s labor market impact on those who can and who cannot work remotely (27749), and calculate the effect of the timing of stay-at-home orders on the level of pandemic fatalities (27759).

More than 230 NBER working papers have presented pandemic-related research. These papers are open access and have been collected for easy reference. View them in reverse chronological order or by topic area.



New NBER Research

2 September 2020

The Real Effects of Modern Information Technologies

Implementation of the US Securities and Exchange Commission’s Electronic Data Gathering, Analysis, and Retrieval system leads to an increase in the level of corporate investment by and an improvement in the performance of value firms, a study byItay Goldstein, Shijie Yang, and Luo Zuo finds.

1 September 2020

Electoral Concerns Reduce Restrictive COVID-19 Steps

Incumbents who can run for re-election implement less-stringent restrictions to control the COVID-19 pandemic when the election is closer in time, particularly with regard to measures more likely to have a negative economic impact, Massimo Pulejo and Pablo Querubín find.

31 August 2020

Variation in Health Care Prices

Private insurers pay 37 percent more, and Medicare Advantage 10 percent more, than traditional Medicare for the five most common inpatient diagnoses, a study by Toren L. Fronsdal, Jay Bhattacharya, and Suzanne Tamang finds.
More Research

NBER in the News




View all news

Bulletin on Retirement and Disability

An Introduction to Current Research by Fellows in
NBER Retirement and Disability Research Center




The NBER Retirement and Disability Research Center has two competitive training programs for junior scholars, funded through a cooperative agreement with the Social Security Administration. An overview of the program and an introduction to current fellows’ research is featured in the current issue of the Bulletin on Retirement and Disability. Also in this issue are a summary of how bill and benefit timing affects low-income and elderly people’s finances, a summary of how student loan forgiveness affects disability insurance application, and a study of the effectiveness of state-level sick pay mandates.
Subscribe Read online

Follow us on
Twitter RSS facebook

Frequently Requested Items

Business Cycle (Recession & Recovery) Page
This Week's Working Papers
Call for Papers
Fellowship Announcements Sign-up

The NBER Digest

Limitations on H-1B Visas Cause American MNCs
to Hire Skilled Workers in their Foreign Affiliates




Restrictions on high-skilled immigration have made multinational corporations based in the United States more likely to increase employment within their existing foreign affiliates and to open entirely new affiliates, according to research featured in the new edition of The NBER Digest. Also in this issue of the free, monthly Digest are summaries of studies on the post-war effect of US R&D spending during World War II, variation in public and private insurers’ reimbursements to hospitals, differences in US and Western European productivity growth between 1995 and 2005, the impact of the Voting Rights Act on arrests of Black citizens, and the current state of infrastructure investment in the United States.
Read online Download the PDF

2020 Summer Institute Methods Lectures



The 2020 Methods Lectures introduce differential privacy, a method of assessing the trade-off between releasing more-detailed information based on survey responses and protecting respondents' privacy, and illustrate its application in several settings. The lectures and associated slides are available to view online or download.


The NBER Reporter

How Decision Fatigue and First Impressions Biases
Can Affect the Behaviors of Analysts and Investors




Forecast accuracy declines over the course of a day as the number of forecasts an analyst has issued increases, and the more forecasts the analyst issues, the more likely those forecasts will reflect herding toward a consensus, according to research featured in the current edition of the NBER Reporter. Also in this issue of the Reporter, NBER affiliates write about making health care decisions in conditions of uncertainty, the impacts of tax credits on corporate behavior, medical spending and savings in elderly households, and research in the NBER's decade-long project on the Economics of Digitization.
Read online Download the PDF

Bulletin on Health

What Can We Learn About COVID-19 Infection Rates
and Infection Fatality Rates Without Randomized Testing?




The summer issue of the Bulletin on Health features two studies that introduce methods for using currently available information to better understand COVID-19 infection rates and the implied infection fatality rates. One paper generates upper and lower bounds on the rates of COVID-19 infection under minimal assumptions, and finds that these bounds are necessarily wide, due to the small proportion of the population that has been tested. The second paper leverages additional assumptions and data, such as travel patterns from the virus epicenters, to infer infection rates. Although the studies take different approaches, they both indicate that infection fatality rates are considerably lower than the fatality rates among confirmed COVID-19 cases. Also featured in this issue of the free Bulletin on Health are a study of the long-term impacts of OxyContin’s reformulation on fatal drug overdoses, a study of the role of Medicaid coverage in reducing infant mortality during flu pandemics, and a profile of NBER research associate Doug Almond.
Subscribe Read online

NBER PRIVACY POLICY




 
 
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