Determinants of credit to households in a life-cycle model

Michał Rubaszek and Dobromił Serwa ()

No 92, NBP Working Papers from Narodowy Bank Polski

Abstract: This paper applies a life-cycle model with individual income uncertainty to investigate the determinants of credit to households. We show that the value of household credit to GDP ratio depends on (i) the lending-deposit interest rate spread, (ii) individual income uncertainty, (iii) individual productivity persistence, and (iv) the generosity of the pension system. Subsequently, we provide empirical evidence for the predictions of the theoretical model on the basis of data for OECD and EU countries.

Keywords: Household credit; life cycle economies; banking sector (search for similar items in EconPapers)
JEL-codes: E21 E43 E51 (search for similar items in EconPapers)
Pages: 42
Date: 2011
New Economics Papers: this item is included in nep-ban, nep-dge and nep-mac
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Determinants of credit to households in a life-cycle model (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:nbp:nbpmis:92

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