Fiscal Policy and Lending Relationships /

This paper studies how fiscal policy affects loan market conditions in the US. First, it conducts a Structural Vector-Autoregression analysis showing that the bank spread responds negatively to an expansionary government spending shock, while lending increases. Second, it illustrates that these resu...

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Autor principal: Melina, Giovanni
Altres autors: Villa, Stefania
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2013.
Col·lecció:IMF Working Papers; Working Paper ; No. 2013/141
Accés en línia:Full text available on IMF
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100 1 |a Melina, Giovanni. 
245 1 0 |a Fiscal Policy and Lending Relationships /  |c Giovanni Melina, Stefania Villa. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2013. 
300 |a 1 online resource (48 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 paper studies how fiscal policy affects loan market conditions in the US. First, it conducts a Structural Vector-Autoregression analysis showing that the bank spread responds negatively to an expansionary government spending shock, while lending increases. Second, it illustrates that these results are mimicked by a Dynamic Stochastic General Equilibrium model where the bank spread is endogenized via the inclusion of a banking sector exploiting lending relationships. Third, it shows that lending relationships represent a friction that generates a financial accelerator effect in the transmission of the fiscal shock. 
538 |a Mode of access: Internet 
700 1 |a Villa, Stefania. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2013/141 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2013/141/001.2013.issue-141-en.xml  |z IMF e-Library