Garicano, LuisSteinwender, Claudia2017-08-182016Garicano, Luis, and Claudia Steinwender. 2016. “Survive Another Day: Using Changes in the Composition of Investments to Measure the Cost of Credit Constraints.” Review of Economics and Statistics 98 (5) (December): 913–924. doi:10.1162/rest_a_00566.0034-6535http://nrs.harvard.edu/urn-3:HUL.InstRepos:33785680We introduce a novel empirical strategy to measure the size of credit shocks. Theoretically, we show that credit shocks reduce the value of long-term relative to short-term investments. Empirically, we can therefore compare the reduction of long-term relative to short-term investments within firms, allowing for firm-times-year fixed effects. Using Spanish firm-level data, we estimate the credit crunch to be equivalent to an additional tax rate of around 11% on the longest-lived capital. To pin down credit constraints as the underlying cause, we apply triple-differences strategies using foreign ownership or precrisis debt maturity.en-USfinancial crisiseconomic growthinvestmentcreditJournal Article2017-05-102017-12-0610.1162/rest_a_00566