Determinants of Credit to Households in a Life-Cycle Model

National Bank of Poland Working Paper No. 92

42 Pages Posted: 4 Aug 2011 Last revised: 8 Jul 2016

See all articles by Michał Rubaszek

Michał Rubaszek

National Bank of Poland; Warsaw School of Economics (SGH)

Dobromil Serwa

National Bank of Poland; Warsaw School of Economics (SGH)

Multiple version iconThere are 2 versions of this paper

Date Written: July 1, 2011

Abstract

This paper applies a life-cycle model with individual income uncertainty to investigate the determinants of credit to households. We show that the value of household credit to GDP ratio depends on (i) the lending-deposit interest rate spread, (ii) individual income uncertainty, (iii) individual productivity persistence, and (iv) the generosity of the pension system. Subsequently, we provide empirical evidence for the predictions of the theoretical model on the basis of data for OECD and EU countries.

Keywords: household credit, life cycle economies, banking sector

JEL Classification: E21, E43, E51

Suggested Citation

Rubaszek, Michal and Serwa, Dobromil, Determinants of Credit to Households in a Life-Cycle Model (July 1, 2011). National Bank of Poland Working Paper No. 92. Available at SSRN: https://ssrn.com/abstract=1904891 or http://dx.doi.org/10.2139/ssrn.1904891

Michal Rubaszek (Contact Author)

National Bank of Poland ( email )

00-919 Warsaw
Poland

Warsaw School of Economics (SGH) ( email )

aleja Niepodleglosci 162
PL-Warsaw, 02-554
Poland

Dobromil Serwa

National Bank of Poland ( email )

00-919 Warsaw
Poland

Warsaw School of Economics (SGH) ( email )

aleja Niepodleglosci 162
PL-Warsaw, 02-554
Poland

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