Aggregate Loans to the Euro Area Private Sector

By A. Calza, M. Simón, João Sousa. Social Science Research Network, 2003

155 citations recorded by the source corpus.

This paper provides new evidence on the behaviour of euro area aggregate loans to the private sector. Using a sample covering the last twenty years, a cointegrating vector linking the real stock of loans to a small set of domestic macroeconomic variables is found. Besides real GDP and prices, this set includes a new measure of the cost of loans obtained as a weighted average of bank lending rates. The results are overall encouraging, though the recursive estimates of the long-run parameters suggest that in 2000 some disturbances, probably of a temporary nature, affected the system. The study then addresses the issue of the leading indicator properties of loans. It finds that the deviations of the real stock of loans from the equilibrium level implied by the model seem to contain information on future changes in inflation, though not on its level. JEL Classification: C32, C51

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/7049ee2f93098acfb68f8cd2efc0af15c0399504

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. T. Žumer
2. Eric Mayer
3. Timo Wollmershäuser
4. P. Backé
5. Balázs Égert
6. Oliver Hülsewig
7. Alessio Ciarlone

In Finance

1. T. Žumer
2. Eric Mayer
3. Timo Wollmershäuser
4. P. Backé
5. Balázs Égert
6. Oliver Hülsewig

Citations in the corpus

• Bank Loan Supply and Monetary Policy Transmission in Germany: An Assessment Based on Matching Impulse Responses (2006, result): “…and 0.014, which is in line with other reported elasticities that range between 1.1 – 2.5 and 0.01 – 0.60 (see e.g. Calza, Gartner, and Sousa (2003), Calza, Manrique, and Sousa (2003), Fase (1995) Hülsewig, Winker, and Worms (2004) and Kakes (2000)).16 Our model implies that the adjustment of…”
• Credit Growth in Central and Eastern Europe: New (Over)Shooting Stars? (2006, background): “Calza et al. (2001) use both short-term and long-term interest rates, arguing that whether either rates play a more important role depends on the respective share of loans with xed interest rates and variable interest rates.”