Gross Credit Flows
AbstractThis paper contributes to the empirical and theoretical knowledge of gross credit flows: the simultaneous process of credit expansion and contraction associated with a net change in the aggregate quantity of credit. Empirically, the paper summarizes heterogeneity in the banking industry by estimating gross credit flows for the entire US banking system between 1979 and 1999. The empirical exercise shows that sizeable gross flows coexist at any phase of the cycle, even within narrowly defined regional units and bank size categories. Furthermore, the paper finds that aggregate credit contraction is a concentrated series, which implies that a burst in credit contraction is followed by prolonged periods of low contraction. Theoretically, the paper proposes a matching model in which financiers have to spend time and resources to expand credit to heterogeneous entrepreneurs. The outcome of the model resulting from the combination of idiosyncratic shocks and asymmetric adjustment to positive and negative aggregate shocks appears consistent with the empirical properties of aggregate credit flows.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 2569.
Date of creation: Sep 2000
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Other versions of this item:
- E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
- E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Silvio Contessi & Johanna L. Francis, 2011. "TARP beneficiaries and their lending patterns during the financial crisis," Review, Federal Reserve Bank of St. Louis, issue Mar, pages 105-126.
- Etienne Wasmer & Philippe Weil, 2004.
"The Macroeconomics of Labor and Credit Market Imperfections,"
American Economic Review,
American Economic Association, vol. 94(4), pages 944-963, September.
- Wasmer, Etienne & Weil, Philippe, 2002. "The Macroeconomics of Labour and Credit Market Imperfections," CEPR Discussion Papers 3334, C.E.P.R. Discussion Papers.
- Wasmer, Etienne & Weil, Philippe, 2000. "The Macroeconomics of Labor and Credit Market Imperfections," IZA Discussion Papers 179, Institute for the Study of Labor (IZA).
- Nicolas Petrosky-Nadeau & Etienne Wasmer, .
"Macroeconomic Dynamics in a Model of Goods, Labor and Credit Market Frictions,"
GSIA Working Papers
2011-E6, Carnegie Mellon University, Tepper School of Business.
- Petrosky-Nadeau, Nicolas & Wasmer, Etienne, 2011. "Macroeconomic Dynamics in a Model of Goods, Labor and Credit Market Frictions," IZA Discussion Papers 5763, Institute for the Study of Labor (IZA).
- Nicolas Petrovsky-Nadeau & Etienne Wasmer, 2011. "Macroeconomic Dynamics in a Model of Goods, Labor and Credit Market Frictions," Sciences Po publications info:hdl:2441/5l6uh8ogmqi, Sciences Po.
- Silvio Contessi & Johanna Francis, 2009.
"U.S. Commercial Bank Lending through 2008:Q4: New Evidence from Gross Credit Flows,"
Fordham Economics Discussion Paper Series
dp2009-04, Fordham University, Department of Economics.
- Silvio Contessi & Johanna L. Francis, 2013. "U.S. Commercial Bank Lending Through 2008:Q4: New Evidence From Gross Credit Flows," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 428-444, 01.
- Silvio Contessi & Johanna Francis, 2009. "U.S. commercial bank lending through 2008:Q4: new evidence from gross credit flows," Working Papers 2009-011, Federal Reserve Bank of St. Louis.
- Stijn Claessens & M. Ayhan Kose & Marco E. Terrones, 2009.
"What happens during recessions, crunches and busts?,"
CEPR & CES & MSH, vol. 24, pages 653-700, October.
- Marco Terrones & M. Ayhan Kose & Stijn Claessens, 2008. "What Happens During Recessions, Crunches, and Busts?," IMF Working Papers 08/274, International Monetary Fund.
- Claessens, Stijn & Kose, Ayhan & Terrones, Marco E., 2008. "What Happens During Recessions, Crunches and Busts?," CEPR Discussion Papers 7085, C.E.P.R. Discussion Papers.
- Luis Araujo & Raoul Minetti, 2012.
"Credit Crunches, Asset Prices and Technological Change,"
Mo.Fi.R. Working Papers
61, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
- Luis Araujo & Raoul Minetti, 2012. "Credit Crunches, Asset Prices and Technological Change," Working Papers CASMEF 1204, Dipartimento di Economia e Finanza, LUISS Guido Carli.
- Florio, Anna, 2006. "The asymmetric effects of monetary policy in a matching model with a balance sheet channel," Journal of Macroeconomics, Elsevier, vol. 28(2), pages 375-391, June.
- Nicoletta Batini & Young-Bae Kim & Paul Levine & Emanuela Lotti, 2009.
"Informal Labour and Credit Markets: A Survey,"
School of Economics Discussion Papers
0609, School of Economics, University of Surrey.
- Batini, Nicoletta & Kim, Young-Bae & Levine, Paul & Lotti, Emanuela, 2011. "Informal Labour and Credit Markets: A Survey," Working Papers 11/94, National Institute of Public Finance and Policy.
- Paul Levine & Emanuela Lotti & Nicoletta Batini & Young-Bae Kim, 2010. "Informal Labour and Credit Markets: A Survey," IMF Working Papers 10/42, International Monetary Fund.
- Marlène Isoré, 2011. "International Propagation of Financial Shocks in a Search and Matching Environment," FIW Working Paper series 068, FIW.
- Bruno Coric, 2011. "The financial accelerator effect: concept and challenges," Financial Theory and Practice, Institute of Public Finance, vol. 35(2), pages 171-196.
- Victor E. Li, 2012. "Monetary Transmission and the Search for Liquidity," Villanova School of Business Department of Economics and Statistics Working Paper Series 19, Villanova School of Business Department of Economics and Statistics.
- Becsi, Zsolt & Li, Victor E. & Wang, Ping, 2005.
"Heterogeneous borrowers, liquidity, and the search for credit,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 29(8), pages 1331-1360, August.
- Zsolt Becsi & Victor Li & Ping Wang, . "Heterogeneous Borrowers, Liquidity, and the Search for Credit," Departmental Working Papers 2002-02, Department of Economics, Louisiana State University.
- Etienne Wasmer & Nicolas Petrosky-Nadeau, 2011. "Propagation in a Model of Goods, Labor and Financial Market Frictions," 2011 Meeting Papers 119, Society for Economic Dynamics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.