Consumer credit in an era of financial liberalization : an overreaction to repressed demand?

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dc.contributor.author Brissimis, Sophocles N.
dc.contributor.author Garganas, Eugenie N.
dc.contributor.author Hall, Stephen G.
dc.date.accessioned 2013-12-12T06:54:19Z
dc.date.available 2014-09-01T00:20:07Z
dc.date.issued 2014
dc.description.abstract In this article, we empirically analyse the factors which determined consumer credit in Greece in the period before and after the financial liberalization, while accounting for significant changes in structure due to the lifting of credit restrictions and the subsequent impressive boom of consumer loans. We use multivariate cointegration techniques to estimate a vector error correction model (VECM) and identify separate demand and supply relationships for consumer loans. We introduce demand and supply-related shifts in parameters through the inclusion of appropriate dummy variables and trends in the long-run relationships. We partly deviate from the typical Johansen procedure and estimate the model in two steps. We find that the theoretical exclusion and coefficient-size restrictions on the demand and supply cointegrating vectors are valid. Our results are consistent with the operation of a bank lending channel in Greece. We also find that the supply side was mostly responsible for the acceleration of consumer loan growth following credit liberalization. en_US
dc.description.librarian hb2013 en_US
dc.description.uri http://www.tandfonline.com/loi/raec20 en_US
dc.identifier.citation Sophocles N. Brissimis, Eugenie N. Garganas & Stephen G. Hall (2014) Consumer credit in an era of financial liberalization: an overreaction to repressed demand?, Applied Economics, 46:2, 139-152, DOI:10.1080/00036846.2013.835482 en_US
dc.identifier.issn 0003-6846 (print)
dc.identifier.issn 1466-4283 (online)
dc.identifier.other 10.1080/00036846.2013.835482
dc.identifier.uri http://hdl.handle.net/2263/32872
dc.language.iso en en_US
dc.publisher Routledge en_US
dc.rights © Taylor & Francis. This is an electronic version of an article published in Applied Economics, vol. 46, no. 2, pp.139-152, 2014. doi : 10.1080/00036846.2013.835482 Applied Economics is available online at : http://www.tandfonline.com/loi/raec20 en_US
dc.subject Consumer credit en_US
dc.subject Financial liberalization en_US
dc.subject Cointegration en_US
dc.subject Structural breaks en_US
dc.title Consumer credit in an era of financial liberalization : an overreaction to repressed demand? en_US
dc.type Postprint Article en_US


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