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

dc.contributor.authorBrissimis, Sophocles N.
dc.contributor.authorGarganas, Eugenie N.
dc.contributor.authorHall, Stephen George
dc.date.accessioned2013-12-12T06:54:19Z
dc.date.available2014-09-01T00:20:07Z
dc.date.issued2014
dc.description.abstractIn 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.librarianhb2013en_US
dc.description.urihttp://www.tandfonline.com/loi/raec20en_US
dc.identifier.citationSophocles 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:10.1080/00036846.2013.835482en_US
dc.identifier.issn0003-6846 (print)
dc.identifier.issn1466-4283 (online)
dc.identifier.other10.1080/00036846.2013.835482
dc.identifier.urihttp://hdl.handle.net/2263/32872
dc.language.isoenen_US
dc.publisherRoutledgeen_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/raec20en_US
dc.subjectConsumer crediten_US
dc.subjectFinancial liberalizationen_US
dc.subjectCointegrationen_US
dc.subjectStructural breaksen_US
dc.titleConsumer credit in an era of financial liberalization : an overreaction to repressed demand?en_US
dc.typePostprint Articleen_US

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