Convergence in Household Credit Demand Across Euro Area Countries: Evidence from Panel Data

40 Pages Posted: 26 Oct 2010

See all articles by Olivier de Bandt

Olivier de Bandt

Banque de France - Economic Study and Research Division

Catherine Bruneau

Université Paris X Nanterre; Université Paris I Panthéon-Sorbonne

Widad El Amri

Banque de France

Date Written: October 1, 2006

Abstract

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.

Keywords: Credit Demand, Panel Cointegration, Households, Bank Profitability

JEL Classification: E51, C31, C32, C33

Suggested Citation

de Bandt, Olivier and Bruneau, Catherine and El Amri, Widad, Convergence in Household Credit Demand Across Euro Area Countries: Evidence from Panel Data (October 1, 2006). Banque de France Working Paper No. NER-R 158, Available at SSRN: https://ssrn.com/abstract=1697644 or http://dx.doi.org/10.2139/ssrn.1697644

Olivier De Bandt (Contact Author)

Banque de France - Economic Study and Research Division ( email )

31, rue Croix des Petits Champs
75049 Paris Cedex 01
FRANCE
(33 1) 42 92 28 80 (Phone)
(33 1) 42 92 27 66 (Fax)

Catherine Bruneau

Université Paris X Nanterre ( email )

Room G301, Building G
92001 Nanterre Cedex, 92001
France

Université Paris I Panthéon-Sorbonne ( email )

17, rue de la Sorbonne
Paris, IL 75005
France

Widad El Amri

Banque de France ( email )

Paris
France

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