The Impact of Central Bank Turnover and Credit Volatility on the Costs of Banking Crises
DOI:
https://doi.org/10.18559/SOEP.2017.8.3Keywords:
Bank credit, Banking crisis, Central bank independence, Credit, Central banks, Heckman model (heckit model)Abstract
The paper focuses on the impact of central bank governor turnover and domestic credit volatility on the probability of the occurrence and costs of banking crises. Using data on 83 crises episodes in developed and emerging countries and the Heckman model, I show that only irregular turnover and credit volatility impact on both the output costs of crises and their emergence. Trend credit expansion raises only the likelihood of a crisis.Downloads
References
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