A micro data approach to the identification of credit crunches

Horst Rottmann and Timo Wollmershäuser

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: This article presents a micro data approach to the identification of credit crunches. Using a survey among German firms which regularly queries the firms’ assessment of the current willingness of banks to extend credit, we estimate the probability of a restrictive loan supply policy by time taking into account the creditworthiness of borrowers. Creditworthiness is approximated by firm-specific factors, e.g. the firms’ assessment of their current business situation and their business expectations. After controlling for the return on the banks’ risk-free investment alternative, which is also likely to affect the supply of loans, we derive a credit crunch indicator, which measures that part of the shift in the loan supply that is neither explained by firm-specific factors nor by the opportunity costs of providing risky loans.

Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (17)

Published in Applied Economics 17 45(2013): pp. 2423-2441

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: A micro data approach to the identification of credit crunches (2013)
Working Paper: A Micro Data Approach to the Identification of Credit Crunches (2010)
Working Paper: A micro data approach to the identification of credit crunches (2010)
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:lmu:muenar:19741

Access Statistics for this paper

More papers in Munich Reprints in Economics from University of Munich, Department of Economics Ludwigstr. 28, 80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Tamilla Benkelberg ().