Kevin D. Duncan
I am a PhD candidate in Economics at Iowa State University. My research deals with estimating the economic impacts of government policies on regional firm entry behavior, with secondary interest in econometric methods for regional economics.
My Job Market Paper estimates the average increase in firm entry rates among counties that had banks receive Capital Purchase Program (CPP) funds. I use a mixture of matching and synthetic control methods to create estimates of the treatment on the treated, while jointly accounting for dynamic treatment assignment and interference effects caused by credit market spillovers. This research shows that despite the large outlay of money from the government, there was not a resulting increase in firm entry over the 2008 Financial Crisis. Other studies have also shown that banks that received CPP funds where already predisposed to have a higher chance of paying back CPP funds, thus when evaluating the program on its ability to loosen credit markets through the intermediate impact on new firm entry.