Credit decomposition and business cycles in emerging market economies

Name: Credit decomposition and business cycles in emerging market economies
Author: Bahadır, Berrak, Gumus, I.

İsim	Credit decomposition and business cycles in emerging market economies
Yazar	Bahadır, Berrak, Gumus, I.
Basım Tarihi:	2016
Basım Yeri	- Elsevier
Konu	Household credit, Business credit, Business cycles, Credit shocks
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	1873-0353
Kayıt Numarası	297f06c6-1472-4fa6-bfb4-16d0b43e063a
Lokasyon	Economics
Tarih	2016
Örnek Metin	This paper analyzes the differential effects of household and business credit dynamics on business cycles in emerging market economies. We first provide evidence that existing results relating credit expansions to economic expansions, real exchange rate appreciations and trade deficits hold more strongly for household credit than business credit. Then, using a two-sector real business cycle model of a small open economy, we study the model dynamics generated by shocks to household credit and business credit, the latter further divided into credit to tradable and nontradable sectors. The results show that the three types of credit shocks generate different dynamics in sectoral input and output levels as well as the real exchange rate. The model successfully generates the comovement between the cycle and different credit types, matching the strong positive correlation of household credit with output and real exchange rate, and the negative correlation with net exports. Our results underline the importance of distinguishing between household and business credit in studying credit dynamics.
DOI	10.1016/j.jinteco.2016.10.003
Cilt	103

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Credit decomposition and business cycles in emerging market economies

Yazar Bahadır, Berrak, Gumus, I.

Basım Tarihi 2016

Basım Yeri - Elsevier

Konu Household credit, Business credit, Business cycles, Credit shocks

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 1873-0353

Kayıt Numarası 297f06c6-1472-4fa6-bfb4-16d0b43e063a

Lokasyon Economics

Tarih 2016

Örnek Metin This paper analyzes the differential effects of household and business credit dynamics on business cycles in emerging market economies. We first provide evidence that existing results relating credit expansions to economic expansions, real exchange rate appreciations and trade deficits hold more strongly for household credit than business credit. Then, using a two-sector real business cycle model of a small open economy, we study the model dynamics generated by shocks to household credit and business credit, the latter further divided into credit to tradable and nontradable sectors. The results show that the three types of credit shocks generate different dynamics in sectoral input and output levels as well as the real exchange rate. The model successfully generates the comovement between the cycle and different credit types, matching the strong positive correlation of household credit with output and real exchange rate, and the negative correlation with net exports. Our results underline the importance of distinguishing between household and business credit in studying credit dynamics.

DOI 10.1016/j.jinteco.2016.10.003

Cilt 103