Who Gets the Credit? And Does It Matter? Household vs. Firm Lending across Countries

Neven Valev, Berrak Buyukkarabacak, Thorsten Beck and Felix Rioja
Authors registered in the RePEc Author Service: Berrak BAHADIR

No 7400, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: While theory predicts different effects of household credit and enterprise credit on the economy, the empirical literature has mainly used aggregate measures of overall bank lending to the private sector. We construct a new dataset from 45 developed and developing countries, decomposing bank lending into lending to enterprises and lending to households and assess the different effects of these two components on real sector outcomes. We find that: 1) enterprise credit raises economic growth whereas household credit has no effect; 2) enterprise credit reduces income inequality whereas household credit has no effect; and 3) household credit is negatively associated with excess consumption sensitivity, while there is no relationship between enterprise credit and excess consumption sensitivity.

Keywords: Financial intermediation; Firm credit; Household credit (search for similar items in EconPapers)
JEL-codes: D14 G21 G28 (search for similar items in EconPapers)
Date: 2009-08
New Economics Papers: this item is included in nep-ban, nep-fdg and nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://cepr.org/publications/DP7400 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Who Gets the Credit? And Does It Matter? Household vs. Firm Lending Across Countries (2012)
Working Paper: Who Gets the Credit? And Does it Matter? Household vs Firm Lending Across Countries (2009)
Working Paper: Who Gets the Credit? And Does it Matter? Household vs Firm Lending Across Countries (2009)
Working Paper: Who gets the credit ? and does it matter ? household vs. firm lending across countries (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:7400

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP7400

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().