Financial Cycles and Credit Growth across Countries
- (pp. 509-12)
Abstract
In Coimbra and Rey (2017) we develop a dynamic macroeconomic model with heterogeneous financial intermediaries and endogenous entry. It features time-varying endogenous macroeconomic risk that arises from the risk-shifting behavior of financial intermediaries. We test empirically in a broad panel of countries the implication that credit creation is more elastic to funding costs when the distribution of leverage in the banking system is more positively skewed.Citation
Coimbra, Nuno, and Hélène Rey. 2018. "Financial Cycles and Credit Growth across Countries." AEA Papers and Proceedings, 108: 509-12. DOI: 10.1257/pandp.20181059Additional Materials
JEL Classification
- E32 Business Fluctuations; Cycles
- E44 Financial Markets and the Macroeconomy
- G21 Banks; Depository Institutions; Micro Finance Institutions; Mortgages