Credit decomposition and business cycles in emerging market economies

Bahadir, Berrak; Gümüş, İnci

doi:10.1016/j.jinteco.2016.10.003

Cited by 57 publications

(39 citation statements)

References 13 publications

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“…The prominence of household debt is also found in emerging economies. Bahadir and Gumus (2016) focus on Argentina, Brazil, Chile, Korea, Mexico, South Africa, Thailand, and Turkey; and they show that household debt to GDP ratios in almost all of these countries have risen substantially since the early 1990s. In contrast, business credit to GDP ratios have been relatively stable.…”

Section: The Household Demand Channelmentioning

confidence: 99%

Finance and Business Cycles: The Credit-Driven Household Demand Channel

Mian

Sufi

2018

SSRN Journal

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for comments that substantially improved the draft. We thank Michael Varley for excellent research assistance. We also thank the Julis Rabinowitz Center for Public Policy and Finance at Princeton and the Initiative on Global Markets and the Fama-Miller Center at Chicago Booth for financial support. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

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Section: The Household Demand Channelmentioning

confidence: 99%

Finance and Business Cycles: The Credit-Driven Household Demand Channel

Mian

Sufi

2018

SSRN Journal

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“…Büyükkarabacak and Krause (2009) suggest that the composition of credit does matter for the trade balance, such that lending to consumers has a negative effect on net exports, whilst firm loans contribute to a rise in net exports. Moreover, Bahadir and Gumus (2016), using a two-sector real business cycle model of a small open economy, analyze the differential effects of household and business credits dynamics on business cycles in emerging market economies. Their results suggested that two types of credit shocks generated different dynamics in sectoral input and output levels, as well as the real exchange rate.…”

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confidence: 99%

Does Credit Composition have Asymmetric Effects on Income Inequality? New Evidence from Panel Data

Seven

Kılınç

Coşkun

2018

IJFS

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This paper studied the effects of credit to private non-financial sectors on income inequality. In particular, we focused on the distinction between household and firm credits, and investigated whether these two types of credit had adverse effects on income inequality. Employing cross-section augmented cointegrating regressions and using balanced panel data for 30 developed and developing countries over the period from 1995 to 2013, we showed that firm credit reduced income inequality, whereas there was no significant impact of household credit on income inequality. We concluded that it was not the size of the private credit but its composition which mattered in reducing income inequality, due to the asymmetric effects of different types of credit.

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“…In model 2, however, it is seen that with a probability value of 0.03 smaller than the alpha value ( = 10%) signifies economic growth can be a procyclical credit. Karfakis, (2013); Bahadir and Gumus (2016) to obtain credit growth results that tend to follow the economic growth can be a procyclical potentially systemic risk.…”

Section: Resultsmentioning

confidence: 99%

Evaluation Of Macroprudential Policy On Credit Growth In Indonesia: Credit Registry Data Approach

Dana

2018

Etikonomi

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Macro-prudential policies have an essential role in mitigating the imbalances in the financial sector that stem from procyclical credit growth. This study aims to evaluate macro-prudential policy in mitigating risk on procyclical credit growth with a registry data approach. Structural Vector Autoregression (SVAR) analysis method is used to evaluate macro-prudential policy in influencing credit growth. The results show LTV instruments can reduce credit growth but not to procyclical mitigation. Dissimilar results in the implementation of CCB and GWM + LDR instruments are capable of procyclical credit mitigation. Policies that can be done by the central bank are the establishment of an early warning system in macro-prudential policy as well as strengthening of Countercyclical Buffer (CCB), Loan to Value (LTV) instruments and Minimum Reserve Requirement + Loan Funding Ratio (GWM + LFR) in capturing systemic risks from various sources which further strengthens the assessment and surveillance.DOI:10.15408/etk.v17i2.7324

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Credit decomposition and business cycles in emerging market economies

Cited by 57 publications

References 13 publications

Finance and Business Cycles: The Credit-Driven Household Demand Channel

Finance and Business Cycles: The Credit-Driven Household Demand Channel

Does Credit Composition have Asymmetric Effects on Income Inequality? New Evidence from Panel Data

Evaluation Of Macroprudential Policy On Credit Growth In Indonesia: Credit Registry Data Approach

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