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Credit conditions indices: Controlling for regime shifts in the Norwegian credit market

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Credit conditions indices : controlling for regime shifts in the Norwegian credit market

Jansen, Eilev S.; Krogh, Tord S. H. - 2011

The interaction between financial markets and the macroeconomy can be strongly affected by changes in credit market regulations. In order to take account of these effects the authors control explicitly for regime shifts in a system of debt equations for Norway using a common, flexible trend. The...