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dc.titleCreditor Protection and Financial Cycles
dc.contributor.authorGalindo, Arturo
dc.contributor.authorMicco, Alejandro
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageThe Caribbean
dc.coverageCentral America
dc.coverageSouth America
dc.date.available2011-02-04T00:00:00
dc.date.issue2001-04-01T00:00:00
dc.description.abstractWe develop a model in which the elasticity of credit to exogenous shocks depends on creditor rights regulations. We show that an increase in creditor protection reduces the elasticity of credit supply to exogenous shocks, and hence the amplitude of the credit cycle. Using an extended set of a measure of creditor rights protection in the spirit of La Porta et al. (1998), we find that stricter creditor rights regulations not only increase the breadth of the credit market but also reduce the volatility of the credit cycle.
dc.identifier.doihttp://dx.doi.org/10.18235/0010790
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Creditor-Protection-and-Financial-Cycles.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectFinancial Sector
dc.subject.keywordsWP-443
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
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