Talavera, Oleksandr; Tsapin, Andriy; Zholud, Oleksandr - In: Economic Systems 36 (2012) 2, pp. 279-293
This study investigates the link between bank lending behavior and country-level instability. Our dynamic model of bank's profit maximization predicts a non-monotonic relationship between bank lending and macroeconomic uncertainty. We test this proposition using a panel of Ukrainian banks over...