Best Seller Aggregate Uncertainty and the Supply of Credit
Aggregate Uncertainty and the Supply of Credit High quality books
Aggregate Uncertainty and the Supply of Credit
By:Fabian Valencia
Published on 2013-12-02 by International Monetary Fund
Recent studies show that uncertainty shocks have quantitatively important effects on the real economy. This paper examines one particular channel at work: the supply of credit. It presents a model in which a bank, even if managed by risk-neutral shareholders and subject to limited liability, can exhibit self-insurance, and thus loan supply contracts when uncertainty increases. This prediction is tested with the universe of U.S. commercial banks over the period 1984-2010. Identification of credit supply is achieved by looking at the differential response of banks according to their level of capitalization. Consistent with the theoretical predictions, increases in uncertainty reduce the supply of credit, more so for banks with lower levels of capitalization. These results are weaker for large banks, and are robust to controlling for the lending and capital channels of monetary policy, to different measures of uncertainty, and to breaking the dataset in subsamples. Quantitatively, uncertainty shocks are almost as important as monetary policy ones with regards to the effects on the supply of credit.
This Book was ranked at 13 by Google Books for keyword Credit channel.
Book ID of Aggregate Uncertainty and the Supply of Credit's Books is CAxwAgAAQBAJ, Book which was written byFabian Valenciahave ETAG "cAquMoyrmQM"
Book which was published by International Monetary Fund since 2013-12-02 have ISBNs, ISBN 13 Code is 9781475526851 and ISBN 10 Code is 1475526857
Reading Mode in Text Status is false and Reading Mode in Image Status is true
Book which have "26 Pages" is Printed at BOOK under CategoryBusiness and Economics
This Book was rated by Raters and have average rate at ""
This eBook Maturity (Adult Book) status is NOT_MATURE
Book was written in en
eBook Version Availability Status at PDF is true and in ePub is false
Book Preview
Comments
Post a Comment