those factors and the occurrence of several types of problems during the course of a credit engagement. Furthermore, the … results of both regressions are used to test theoretical hypotheses regarding the impact of certain parameters on credit terms …. Second, credit contracts seem to be priced lower for situations with greater risks. Finally, the results do not fully support …

This paper investigates the role of bank credit in predicting U.S. recessions since the 1960s in the context of a … bivariate probit model. A set of results emerge. First, credit booms are shown to have strong positive effects in predicting … declines in the business cycle at horizons ranging from six to nine months. Second, I propose to isolate the effect of credit …