The second moments matter: The impact of macroeconomic uncertainty on the allocation of loanable funds
نویسندگان
چکیده
This paper investigates how variations in macroeconomic uncertainty distort commercial banks’ allocation of loanable funds by analyzing the dispersion of banks’ total loan-to-asset ratios over a quartercentury period. JEL: C22, C23, D81, E51.
منابع مشابه
Department of Economics the Second Moments Matter: the Response of Bank Lending Behavior to Macroeconomic Uncertainty
In this paper we investigate whether macroeconomic uncertainty could distort banks’ allocation of loanable funds. To provide a road– map for our empirical investigation, we present a simple framework which demonstrates that lower uncertainty about the return from lending should lead to a more unequal distribution of lending across banks as managers take advantage of more precise knowledge of di...
متن کاملThe second moments matter: The response of bank lending behavior to macroeconomic uncertainty
In this paper we investigate whether macroeconomic uncertainty could distort banks’ allocation of loanable funds. To provide a road– map for our empirical investigation, we present a simple framework which demonstrates that lower uncertainty about the return from lending should lead to a more unequal distribution of lending across banks as managers take advantage of more precise knowledge of di...
متن کاملThe Impact of Exchange Rate shocks on Trade Balance of Iran: A Dynamic Stochastic General Equilibrium Approach
The trade balance is one of the most important macroeconomic topics and one of the strategic macroeconomic constraints for developing countries. The exchange rate is recognized as one of the key factors affecting the trade balance of countries. Exchange rate fluctuations, which causes the fluctuations in relative prices, by destabilizing the economic conditions and increasing the inflation woul...
متن کاملCritique of IS - LM : fiscal deficits , loanable funds , Keynesian Cross and IS
This paper intends to discuss some problematic aspects that IS-LM have when dealing with fiscal deficits, especially when considering loanable funds model. Many others have focused on its assumptions for criticism of IS-LM, but I will mainly focus on its fundamental modelling nature. To say more specifically, I will argue that ordinary ISLM analysis is in contradictory nature to simultaneous eq...
متن کاملThe Impact of Exchange Rate and Investor Confidence Uncertainty on Monetary and Economic Uncertainty in Iran
Failure to timely identify the occurrence of various shocks in the foreign exchange market due to the close relationship with the monetary, macroeconomic, and financial uncertainty can lead to crises and imbalances. In this paper, the effect of exchange rate and investor confidence on monetary and economic uncertainty in Iran is investigated, specifying a Multivariate GARCH model and the Grange...
متن کامل