Publication

MORE MORTGAGES, LOWER GROWTH?

Bezemer, D., Grydaki, M. & Zhang, L., Jan-2016, In : Economic Inquiry. 54, 1, p. 652-674 23 p.

Research output: Contribution to journalArticleAcademicpeer-review

APA

Bezemer, D., Grydaki, M., & Zhang, L. (2016). MORE MORTGAGES, LOWER GROWTH? Economic Inquiry, 54(1), 652-674. https://doi.org/10.1111/ecin.12254

Author

Bezemer, Dirk ; Grydaki, Maria ; Zhang, Lu. / MORE MORTGAGES, LOWER GROWTH?. In: Economic Inquiry. 2016 ; Vol. 54, No. 1. pp. 652-674.

Harvard

Bezemer, D, Grydaki, M & Zhang, L 2016, 'MORE MORTGAGES, LOWER GROWTH?', Economic Inquiry, vol. 54, no. 1, pp. 652-674. https://doi.org/10.1111/ecin.12254

Standard

MORE MORTGAGES, LOWER GROWTH? / Bezemer, Dirk; Grydaki, Maria; Zhang, Lu.

In: Economic Inquiry, Vol. 54, No. 1, 01.2016, p. 652-674.

Research output: Contribution to journalArticleAcademicpeer-review

Vancouver

Bezemer D, Grydaki M, Zhang L. MORE MORTGAGES, LOWER GROWTH? Economic Inquiry. 2016 Jan;54(1):652-674. https://doi.org/10.1111/ecin.12254


BibTeX

@article{32290abf04344dd9949e91713321e67a,
title = "MORE MORTGAGES, LOWER GROWTH?",
abstract = "In newly collected data on 46 economies over 1990-2011, we show that financial development since 1990 was mostly due to growth in credit to real estate and other asset markets, which has a negative growth coefficient. We also distinguish between growth effects of stocks and flows of credit. We find positive growth effects for credit flows to nonfinancial business but not for mortgage and other asset market credit flows. By accounting for the composition of credit stocks and for the effect of credit flows, we explain the insignificant or negative growth effects of financial development in recent times. What was true in the 1960s, 1970s, and 1980s when the field of empirical credit-growth studies blossomed, is no longer true in the 1990s and 2000s. New bank lending is not primarily to nonfinancial business and financial development may no longer be good for growth. These trends predate the 2008 crisis. They prompt a rethink of the role of banks in the process of economic growth. (JEL E44, O16, O40, C33)",
keywords = "FINANCIAL DEVELOPMENT, ECONOMIC-GROWTH, BANKING CRISES, CREDIT BOOMS, LENDING STANDARDS, SCHUMPETER MIGHT, MONETARY-POLICY, DEPENDENCE, HOUSEHOLD, DATABASE",
author = "Dirk Bezemer and Maria Grydaki and Lu Zhang",
year = "2016",
month = "1",
doi = "10.1111/ecin.12254",
language = "English",
volume = "54",
pages = "652--674",
journal = "Economic Inquiry",
issn = "0095-2583",
publisher = "Wiley-Blackwell",
number = "1",

}

RIS

TY - JOUR

T1 - MORE MORTGAGES, LOWER GROWTH?

AU - Bezemer, Dirk

AU - Grydaki, Maria

AU - Zhang, Lu

PY - 2016/1

Y1 - 2016/1

N2 - In newly collected data on 46 economies over 1990-2011, we show that financial development since 1990 was mostly due to growth in credit to real estate and other asset markets, which has a negative growth coefficient. We also distinguish between growth effects of stocks and flows of credit. We find positive growth effects for credit flows to nonfinancial business but not for mortgage and other asset market credit flows. By accounting for the composition of credit stocks and for the effect of credit flows, we explain the insignificant or negative growth effects of financial development in recent times. What was true in the 1960s, 1970s, and 1980s when the field of empirical credit-growth studies blossomed, is no longer true in the 1990s and 2000s. New bank lending is not primarily to nonfinancial business and financial development may no longer be good for growth. These trends predate the 2008 crisis. They prompt a rethink of the role of banks in the process of economic growth. (JEL E44, O16, O40, C33)

AB - In newly collected data on 46 economies over 1990-2011, we show that financial development since 1990 was mostly due to growth in credit to real estate and other asset markets, which has a negative growth coefficient. We also distinguish between growth effects of stocks and flows of credit. We find positive growth effects for credit flows to nonfinancial business but not for mortgage and other asset market credit flows. By accounting for the composition of credit stocks and for the effect of credit flows, we explain the insignificant or negative growth effects of financial development in recent times. What was true in the 1960s, 1970s, and 1980s when the field of empirical credit-growth studies blossomed, is no longer true in the 1990s and 2000s. New bank lending is not primarily to nonfinancial business and financial development may no longer be good for growth. These trends predate the 2008 crisis. They prompt a rethink of the role of banks in the process of economic growth. (JEL E44, O16, O40, C33)

KW - FINANCIAL DEVELOPMENT

KW - ECONOMIC-GROWTH

KW - BANKING CRISES

KW - CREDIT BOOMS

KW - LENDING STANDARDS

KW - SCHUMPETER MIGHT

KW - MONETARY-POLICY

KW - DEPENDENCE

KW - HOUSEHOLD

KW - DATABASE

U2 - 10.1111/ecin.12254

DO - 10.1111/ecin.12254

M3 - Article

VL - 54

SP - 652

EP - 674

JO - Economic Inquiry

JF - Economic Inquiry

SN - 0095-2583

IS - 1

ER -

ID: 19274110