Altavilla, Carlo; Boucinha, Miguel; Bouscasse, Paul - 2022
We propose a new methodology to identify aggregate demand and supply shocks in the bank loan market. We present a model … largely explained by demand shocks. Fluctuations in lending rates were instead mostly determined by bank- driven supply shocks … loan-level data: according to our framework, firm- and bank-time fixed effects only separate demand from supply under …