International Spillovers and Local Credit Cycles

Mehmet Ulu, Sebnem Kalemli-Ozcan, Julian di Giovanni and Yusuf Baskaya
Additional contact information
Sebnem Kalemli-Ozcan: University of Maryland

No 1198, 2017 Meeting Papers from Society for Economic Dynamics

Abstract: We show that capital in ows are important drivers of domestic credit cycles using a rm-bank-loan level dataset for a representative emerging market. Instrumenting in ows by changes in global risk appetite (VIX), we nd that a fall in VIX leads to a large decline in real borrowing rates and an expansion in credit supply. Estimates explain 40% of observed cyclical corporate credit growth. The OLS-elasticity of interest rates vis-a-vis capital in ows is smaller than the IV-elasticity. Banks with higher noncore funding oer relatively lower rates to low net worth rms, but do not extend more credit to them given collateral constraints

Date: 2017
New Economics Papers: this item is included in nep-ban and nep-ifn
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (104)

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2017/paper_1198.pdf (application/pdf)

Related works:
Journal Article: International Spillovers and Local Credit Cycles (2022)
Working Paper: International spillovers and local credit cycles (2020)
Working Paper: International Spillovers and Local Credit Cycles (2017)
Working Paper: International Spillovers and Local Credit Cycles (2017)
Working Paper: International Spillovers and Local Credit Cycles (2017)
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:red:sed017:1198

Access Statistics for this paper

More papers in 2017 Meeting Papers from Society for Economic Dynamics Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().