Published on Thursday, December 7, 2017 | Updated on Thursday, December 7, 2017

Deleveraging after the burst of a credit-bubble

Summary

We present the results of an empirical exercise in which we seek to explain the deleveraging process that follows the burst of a credit bubble following a systemic banking crisis. We have built up two new databases and have estimated a SUR regression model to jointly explain and predict how strong and how fast private leverage falls after the burst of a credit-bubble.

Geographies

Authors

Rodolfo Méndez-Marcano
Akshaya Sharma
Alfonso Ugarte BBVA Research - Principal Economist

Documents and files


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EW-Deleveraging-after-the-burst-of-a-credit-bubble

English - December 7, 2017

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