times of high uncertainty, firms reduce their credit demand due to delayed investments or a deterioration in their credit … worthiness, while at the same time banks are more exposed to negative shocks to their balance sheet and thereby reduce credit … supply. To isolate the uncertainty effect from the credit supply effect, we employ matched bank-firm loan data covering all …

the level of real economic activity. Furthermore, the results show that credit crunch hits the North of Italy less than …In this paper, we use Structural VAR analysis to disentangle credit demand and supply shocks and their eFFect on real … economic activity in Italy during the 2008-2014 crisis period. The three endogenous variables considered are the loan interest …