Credit Cyclicality in Chile; A Cross-Country Analysis
This paper analyzes the determinants of credit cyclicality. It constructs a financial development index and studies whether it affects the amplitude of impulse responses to shocks to output, terms of trade, global liquidity, and global risk appetite. The paper uses both country-specific VARs for cross-country analyses and panel VARs to compare impulse responses between various country groupings. The study finds evidence that financial development-especially stronger creditor rights-can mitigate credit cyclicality, given that the response of credit to output or terms of trade shocks is stronger in countries with weaker financial systems.
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alejandro Micco & Ugo Panizza, 2006.
"Bank Ownership and Lending Behavior,"
Working Papers Central Bank of Chile
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- Alejandro Micco & Ugo Panizza, 2004. "Bank Ownership and Lending Behavior," IDB Publications (Working Papers) 6686, Inter-American Development Bank.
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27867134, Harvard University Department of Economics.
- Arturo Galindo & Alejandro Micco, 2001.
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Research Department Publications
4249, Inter-American Development Bank, Research Department.
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- Matías Braun & Borja Larrain, 2005.
"Finance and the Business Cycle: International, Inter-Industry Evidence,"
Journal of Finance,
American Finance Association, vol. 60(3), pages 1097-1128, 06.
- Matias Braun & Borja Larrain, 2004. "Finance and the Business Cycle: International, Inter-industry Evidence," Finance 0403001, EconWPA.
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