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The collapse of credit booms: a competing risks analysis

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Resumo:This paper analyses the collapse of credit booms by using a discrete-time competing risks duration model to disentangle the factors behind the length of benign and harmful credit booms. The results show that economic growth and monetary authorities play the major role in explaining the differences in the length and outcome of credit booms. Moreover, both types of credit expansions display positive duration dependence, i.e. both are more likely to end as they grow older, but hard landing credit booms have proven to be longer than those that land softly.
Autores principais:Castro, Vítor
Outros Autores:Martins, Rodrigo
Assunto:Credit booms Duration analysis Competing risks model Multinomial logit Central Bank independence
Ano:2020
País:Portugal
Tipo de documento:artigo
Tipo de acesso:acesso aberto
Instituição associada:Universidade do Minho
Idioma:inglês
Origem:RepositóriUM - Universidade do Minho
Descrição
Resumo:This paper analyses the collapse of credit booms by using a discrete-time competing risks duration model to disentangle the factors behind the length of benign and harmful credit booms. The results show that economic growth and monetary authorities play the major role in explaining the differences in the length and outcome of credit booms. Moreover, both types of credit expansions display positive duration dependence, i.e. both are more likely to end as they grow older, but hard landing credit booms have proven to be longer than those that land softly.