This paper presents a model of alternative sources of credit to assess the predictive ability of underlying price- and quantity-based financial information variables for aggregate economic activity in the Euro area. A price-based financial information variable outperforms a quantity-based...

This paper presents a model of alternative sources of credit – bank vs. bond finance - to examine the credit substitution hypothesis. Our framework produces testable hypotheses about the behaviour of price- and quantity-based information variables. Examining data from ten Euro-area countries,...