A new IV approach for estimating the efficacy of macroprudential measures

Niklas Gadatsch, Lukas Mann and Isabel Schnabel

Economics Letters, 2018, vol. 168, issue C, 107-109

Abstract: We propose a new identification strategy to assess the efficacy of macroprudential measures. We use a novel instrumental variable based on the idea that a politically sensitive macroprudential measure is more likely to be implemented if a politically independent institution, such as a central bank, is in charge. Our results show that borrower-based macroprudential measures have had a strong and statistically significant dampening effect on credit growth in the European Union.

Keywords: Macroprudential policy; Credit growth; IV; European union (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (9)

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Working Paper: A new IV approach for estimating the efficacy of macroprudential measures (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:168:y:2018:i:c:p:107-109

DOI: 10.1016/j.econlet.2018.04.015

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