Determinants of Credit to Households in a Life-Cycle Model
43 Pages Posted: 6 Feb 2012
There are 2 versions of this paper
Determinants of Credit to Households in a Life-Cycle Model
Date Written: January 30, 2012
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 the lending-deposit interest rate spread, individual income uncertainty, individual productivity persistence, and 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: Suggested Citation
Here is the Coronavirus
related research on SSRN
Recommended Papers
-
By Carlo Cottarelli, Giovanni Dell'ariccia, ...
-
Modelling the Demand for Loans to the Private Sector in the Euro Area
By Alessandro Calza, Christine Gartner, ...
-
Assessing and Managing Rapid Credit Growth and the Role of Supervisory and Prudential Policies
By Paul Hilbers, Inci Otker-robe, ...
-
Assessing and Managing Rapid Credit Growth and the Role of Supervisory and Prudential Policies
By Paul Hilbers, Inci Otker-robe, ...
-
By Christoph K. Duenwald, Nikolay Gueorguiev, ...
-
Capital Flows to Transition Economies: Master or Servant?
By Leslie Lipschitz, Timothy Lane, ...
-
Capital Flows to Transition Economies: Master or Servant?
By Leslie Lipschitz, Timothy Lane, ...
-
Vulnerabilities in Emerging Southeastern Europe - How Much Cause for Concern?
By Piritta Sorsa, Bas Berend Bakker, ...
-
Aggregate Loans to the Euro Area Private Sector
By Alessandro Calza, Marta Manrique Simón, ...
-
Credit Channel Effects in the Monetary Transmission Mechanism
By Simon Hall
