Decomposing the U.S. Great Depression: How important were Loan Supply Shocks?

Max Breitenlechner and Johann Scharler

VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

Abstract: We evaluate contributions of exogenous loan supply shocks to output dynamics during the Great Depression. Based on a structural VAR, we impose sign restrictions to identify loan supply shocks in addition to standard macroeconomic shocks. Our results indicate that the banking panics that occurred in the early 1930s were associated with negative loan supply shocks, supporting the view that disruptions in financial intermediation contributed significantly to the severity of the Great Depression.

JEL-codes: C32 E32 E44 N12 N22 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-his and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/168208/1/VfS-2017-pid-3167.pdf (application/pdf)

Related works:
Journal Article: Decomposing the U.S. Great Depression: How important were loan supply shocks? (2021)
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:zbw:vfsc17:168208

Access Statistics for this paper

More papers in VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().