Castro-Martins2020_Article_RidingTheWaveOfCreditAreLonger.pdf (528.61 kB)
Riding the wave of credit: Are longer expansions really a bad omen?
journal contribution
posted on 2019-10-21, 12:53 authored by Vitor CastroVitor Castro, Rodrigo MartinsSome studies argue that credit booms that end up in banking crises are usually longer than those that end without creating havoc. However, they do not test this hypothesis empirically. This paper employs a duration model to assess the relationship between the length of credit booms and their outcome. The empirical analysis shows that credit expansions that end in banking crisis are indeed more prone to last longer than those that end softly. Furthermore, differences in length patterns are found to start in the build-up phase, extending to the unwinding phase of credit cycles.
History
School
- Business and Economics
Department
- Economics
Published in
Open Economies ReviewVolume
31Pages
729–751Publisher
SpringerVersion
- VoR (Version of Record)
Rights holder
© The AuthorsPublisher statement
This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.Acceptance date
2019-10-14Publication date
2019-12-04Copyright date
2020ISSN
0923-7992eISSN
1573-708XPublisher version
Language
- en