" approach to study how lender composition and willingness to provide credit affect the relationship between credit expansions … and real activity. A key advantage of jointly modeling the demand for and supply of credit is the ability to evaluate … equilibrium elasticities of credit quantities with respect to variables of interest. We document that the sectoral composition of …

the bright side of shadow banking in China, i.e., it helps correct bank credit misallocations and thus serves as a second …