BANKING CONDITIONS AND REGIONAL ECONOMIC-PERFORMANCE EVIDENCE OF A REGIONAL CREDIT CHANNEL

• 成果类型: Article
• 署名作者: SAMOLYK, KA
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/0304-3932(94)90052-3
• 发表日期: 1994
• 页码: 259-278
• 关键词: Financial Markets; banking; business fluctuations; Credit channel

摘要

This paper examines the empirical relationship between banking conditions and economic performance at the state level. We develop a regional credit view to explain how, due to information costs, regional banking conditions can affect local economic activity by impacting on a region's ability to fund local investments. Localized information costs suggest that banking-sector problems may constrain economic activity in financially distressed regions, whereas no such link need be evident in financially sound regions. We test for the empirical relevance of this asymmetry for the 1983-1990 period using state-level data and find evidence that local banking-sector conditions explain more of real personal income growth in states where bank loan quality has been poor than in those where banking conditions are relatively healthy.