Working Paper
Across the Universe: Policy Support for Employment and Revenue in the Pandemic Recession
Decker, Ryan A.; Kurtzman, Robert J.; Lutz, Byron F.; Nekarda, Christopher J. (2021-06-23)
Using data from 14 government sources, we develop comprehensive estimates of U.S. economic activity by sector, legal form of organization, and firm size to characterize how four government direct lending programs—the Paycheck Protection Program, the Main Street Lending Program, the Corporate Credit Facilities, and the Municipal Lending Facilities—relate to these classes of economic activity in the United States. The classes targeted by these programs are vast—accounting for 97 percent of total U.S. employment—though entityspecific financial criteria limit coverage within specific ...
Finance and Economics Discussion Series , Paper 2020-099r1

Working Paper
Designing a Main Street Lending Facility
Vardoulakis, Alexandros (2020-06-26)
Banks add value by monitoring borrowers. High funding costs make banks reluctant to lend. A central bank can ease funding by purchasing loans, but cannot distinguish which loans require more or less monitoring, exposing it to adverse selection. A multi-tier loan pricing facility arises as the optimal institutional design setting both the purchase price and banks' risk retention for given loan characteristics. This design dominates uniform (flat) structure for loan purchases, provides the right incentives to banks and achieves maximum lending at lower rates to businesses. Both the multi-tier ...
Finance and Economics Discussion Series , Paper 2020-052

Working Paper
Across the Universe: Policy Support for Employment and Revenue in the Pandemic Recession
Kurtzman, Robert J.; Nekarda, Christopher J.; Decker, Ryan A.; Lutz, Byron F. (2020-12-04)
Using data from 14 government sources, we develop comprehensive estimates of U.S. economic activity by sector, legal form of organization, and firm size to characterize how four government direct lending programs—the Paycheck Protection Program, the Main Street Lending Program, the Corporate Credit Facilities, and the Municipal Lending Facilities—relate to these classes of economic activity in the United States. The classes targeted by these programs are vast—accounting for 97 percent of total U.S. employment—though entityspecific financial criteria limit coverage within specific ...
Finance and Economics Discussion Series , Paper 2020-099