Convergence in Household Credit Demand Across Euro Area Countries: Evidence from Panel Data
Olivier De Bandt
Banque de France - Economic Study and Research Division
Université Paris X Nanterre
Widad El Amri
Banque de France
October 1, 2006
Banque de France Working Paper No. NER-R 158
The paper contributes to the literature on the convergence of financial systems in the euro area by estimating household credit demand in individual countries. Using the ARDL framework advocated notably by Pesaran et al. (1999), the paper provides evidence on the convergence of long run credit demand determinants (interest rates, investment and house prices) among the largest euro area countries, while short run dynamics remain heterogenous across countries. The paper also demonstrates that the equation uncovers demand rather than supply behaviour.
Number of Pages in PDF File: 40
Keywords: Credit Demand, Panel Cointegration, Households, Bank Profitability
JEL Classification: E51, C31, C32, C33working papers series
Date posted: October 26, 2010
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