Lending Cycles

We investigate the lending behavior of banks by exploiting a rich oanel dataset on the contract terms of approximately two million commercial and industrial loans granted by 580 banks between 1977-1993. Using a Markov switching panel model we demonstrate that banks change their lending standards - from tightness to laxity - systematically over the cycle. We then use an efficient minimum chi-square estimator.

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Year of publication:	1997
Authors:	Asea, P.K. ; Blomberg, S.B.
Institutions:	Department of Economics, Wellesley College
Subject:	CREDIT \| UNEMPLOYMENT \| BUSINESS CYCLES

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Series:	Wellesley College - Department of Economics.
Type of publication:	Book / Working Paper
Notes:	42 pages
Classification:	E32 - Business Fluctuations; Cycles ; E24 - Employment; Unemployment; Wages ; C33 - Models with Panel Data
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005775595