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Crédito Al Sector Privado En República Dominicana (1997-2011): ¿Existe Evidencia De Racionamiento Del Crédito?
[Private Sector Loans in the Dominican Republic (1997-2011):Is There Evidence of credit rationing?]

Author

Listed:
  • Ramirez, Francisco A.

Abstract

This study investigates the determinants of private credit in the Dominican Republic for the period 1997 to 2011. Using a disequilibrium model as in Gosh and Gosh (1999), the demand and supply functions of credit to private sector are estimated, and these results are used to analyzeepisodes of credit crunch. The main conclusion is that the evolution of private sector credit is eminently restricted by the supply side, with the availability of resources and the expected level of economic activity as the main drivers. On the demand side, the cost of borrowing carries a high weight. In fact, this variable, along with the level of activity, is the main determinant of credit demand.

Suggested Citation

  • Ramirez, Francisco A., 2012. "Crédito Al Sector Privado En República Dominicana (1997-2011): ¿Existe Evidencia De Racionamiento Del Crédito? [Private Sector Loans in the Dominican Republic (1997-2011):Is There Evidence of credi," MPRA Paper 68333, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:68333
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    File URL: https://mpra.ub.uni-muenchen.de/68333/1/serie_estudios_econ_7.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Credit rationing; Disequilibrium models;

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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