Testing a Disequilibrium Model of Lending Rate Determination : The Case of Malaysia /

This study examines whether lending rates cleared the market for loans in Malaysia after interest rate liberalization. It is based on a theoretical model in which adverse selection and marginal cost pricing are brought together by the use of a quadratic loss function in the error correction format....

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Bibliografiske detaljer
Hovedforfatter: Scholnick, Barry
Format: Tidsskrift
Sprog:English
Udgivet: Washington, D.C. : International Monetary Fund, 1991.
Serier:IMF Working Papers; Working Paper ; No. 1991/084
Online adgang:Full text available on IMF
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245 1 0 |a Testing a Disequilibrium Model of Lending Rate Determination :   |b The Case of Malaysia /  |c Barry Scholnick. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 1991. 
300 |a 1 online resource (43 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This study examines whether lending rates cleared the market for loans in Malaysia after interest rate liberalization. It is based on a theoretical model in which adverse selection and marginal cost pricing are brought together by the use of a quadratic loss function in the error correction format. This allows for the use of the cointegration methodology. Long-run tests support the model proposed in the paper, while rejecting part of the financial liberalization model. From the short-run results it is concluded that there is a large lag before lending rates respond to exogenous shocks, thus confirming that they do not fully clear the market for loans. 
538 |a Mode of access: Internet 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 1991/084 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/1991/084/001.1991.issue-084-en.xml  |z IMF e-Library