Author
Bertay, Ata Can, Gong, D., Wagner, W.
Publication Date
2017-02
Publication Place
-
Elsevier
Subject
Securitization market, Household securitization, Business securitization, Economic growth
Type
Periodical
Language
English
Digital
Yes
Manuscript
No
Library
Özyeğin University
Library Asset ID
1572-3089
Record ID
9677110b-55d2-4f2e-8dd7-ef1bd3e5db3b
Library Location
International Finance
Date
2017-02
Notes
Due to copyright restrictions, the access to the full text of this article is only available via subscription.
Sample Text
Using an international panel of 104 countries over the period 1995–2012, we analyze the relationship between country-level securitization and economic activity. Our findings suggest that securitization is negatively related to various proxies of economic activity – even prior to the crisis of 2007–2009. We explain this finding as the results of securitization spurring consumption at the expense of investment and capital formation. Consistent with this, we find that securitization of household loans is negatively associated with economic activity, whereas business securitization displays a weak positive association with it, and that household securitization increases an economy's consumption-investment ratio. Our results inform recent initiatives aimed at reviving securitization markets, as they indicate that the impact of securitization crucially depends on the underlying collateral.
DOI
10.1016/j.jfs.2016.01.010
