Why do advanced economies fall into prolonged periods of economic stagnation, particularly in the aftermath of credit … that financially more deregulated economies are more likely to experience persistent stagnation. In the short run, credit …

competition and a lower risk-free rate raise the screening costs of lending, which can result in pooling Nash equilibria with … credit booms. Such equilibria are characterised by sharp increases in credit supply and deteriorations in average loan … capital structure, thus highlighting the role of a risk-taking mechanism. This approach helps explain the existing mixed …

In standard error correction models GDP and credit share a long-run cointegration relationship with causality running … from GDP to credit. The models are inconclusive about the question whether credit has also a positive impact on GDP. A … reason for the mixed effects is the dual nature of credit, having a potential for both supporting economic growth and …

This paper tests the existence of political credit cycles, the positive co-movement between credit and elections. While … support for this relationship has been found in some single-country studies, the link between electoral cycles and credit …-bank credit in 165 countries from 1960 to 2013, we show that both government and private credit significantly increase in election …

find that during the great recession access to credit of firms with weak balance sheets deteriorated relative to other … recession access to credit of weaker firms did not improve relative to other firms and it even further deteriorated somewhat. We … with the positive correlation we find between firms' access to bank loans and the number of firms' bank credit …

business and household investment. The results are then discussed within the context of recent limited participation models …

The aim of this paper is to investigate the relationship between credit and business cycles within a nonlinear … framework. To this end, we rely on the estimation of smooth transition regression models for a sample of 17 OECD countries over … the 1986-2010 period. Our findings show that credit procyclicality is nonlinear, depending on economic conditions. More …

panel probit models to analyse key determinants of credit-less recoveries. Our main findings are the following. First, our … estimated panel probit models suggest that credit-less recoveries are typically preceded by large declines in economic activity …This paper aims to shed light on the characteristics and particularly the determinants of credit-less recoveries. After …

to have a significant effect on economic activity and credit market variables, but to some extent also inflation, in all …

We develop a model of bank lending that allows for credit rationing in equilibrium. Recognizing that small firms incur … a higher percentage cost of monitoring than large firms, the model shows that the incidence of bank credit rationing … consistent with a pattern of a differentially greater degree of rationing of credit to small borrowers during the Great Recession …