Land prices, lending to companies and job creations - Aix-Marseille Université Access content directly
Journal Articles Rue de la Banque Year : 2015

Land prices, lending to companies and job creations


The fluctuations of the value of land held by French firms present a very similar pattern to those of both investment and employment. This Rue de la Banque presents a model in which firms face imperfect labour and credits markets. Due to a collateral constraint for credit, the market value of land in firms’ balance sheets plays an important role in determining how much they can borrow, and thus affects their investment levels and hiring decisions. The empirical results confirm the predictions of the theoretical model. Fluctuations in land prices had an impact on the business cycle and on the dynamics of the labour market in France.


No file

Dates and versions

hal-01457332 , version 1 (06-02-2017)


  • HAL Id : hal-01457332 , version 1


Leo Kaas, Patrick A. Pintus, Simon Ray. Land prices, lending to companies and job creations. Rue de la Banque, 2015, 14. ⟨hal-01457332⟩
64 View
0 Download


Gmail Mastodon Facebook X LinkedIn More