Financial cycles and credit growth across countries
Journal
AEA papers and proceedings
Subject
Economics
Publishing details
Authors / Editors
Coimbra N;Rey H
Biographies
Publication Year
2018
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.
Available on ECCH
No
