Is There a Credit Crunch in the Czech Republic?
We apply a disequilibrium model of credit demand and supply to test the credit crunch hypothesis. We suppose that firms face credit rationing and a realised outstanding loan will be the minimum desired level of commercial bank loans and bank limit for the firm. We adopted the disequilibrium model wh...
| Główni autorzy: | , |
|---|---|
| Format: | Artykuł |
| Język: | English |
| Wydane: |
Mendel University Press
2015-01-01
|
| Seria: | Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis |
| Hasła przedmiotowe: | |
| Dostęp online: | https://acta.mendelu.cz/63/3/0995/ |
| _version_ | 1831567691065851904 |
|---|---|
| author | Lucie Režňáková Svatopluk Kapounek |
| author_facet | Lucie Režňáková Svatopluk Kapounek |
| author_sort | Lucie Režňáková |
| collection | DOAJ |
| description | We apply a disequilibrium model of credit demand and supply to test the credit crunch hypothesis. We suppose that firms face credit rationing and a realised outstanding loan will be the minimum desired level of commercial bank loans and bank limit for the firm. We adopted the disequilibrium model which consists of credit supply and credit demand equations. We suggest that actual observed credit growth rate at time t lies on the supply curve (excess demand), or on the demand curve (excess supply), or on both (equilibrium). Our model is estimated by the full-information maximum likelihood approach with a numerical maximization of the likelihood function. Our basic findings show that significant decrease in credits after the financial crisis in the year 2007 was caused by low economic and investment activity and reject the hypothesis that there is a credit crunch in the Czech Republic. |
| first_indexed | 2024-12-17T12:02:06Z |
| format | Article |
| id | doaj.art-ca5dbaa90fd7411d9e103692fde0f2a6 |
| institution | Directory Open Access Journal |
| issn | 1211-8516 2464-8310 |
| language | English |
| last_indexed | 2024-12-17T12:02:06Z |
| publishDate | 2015-01-01 |
| publisher | Mendel University Press |
| record_format | Article |
| series | Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis |
| spelling | doaj.art-ca5dbaa90fd7411d9e103692fde0f2a62022-12-21T21:49:47ZengMendel University PressActa Universitatis Agriculturae et Silviculturae Mendelianae Brunensis1211-85162464-83102015-01-01633995100310.11118/actaun201563030995Is There a Credit Crunch in the Czech Republic?Lucie Režňáková0Svatopluk Kapounek1Department of Finance, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech RepublicDepartment of Finance, Faculty of Business and Economics, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech RepublicWe apply a disequilibrium model of credit demand and supply to test the credit crunch hypothesis. We suppose that firms face credit rationing and a realised outstanding loan will be the minimum desired level of commercial bank loans and bank limit for the firm. We adopted the disequilibrium model which consists of credit supply and credit demand equations. We suggest that actual observed credit growth rate at time t lies on the supply curve (excess demand), or on the demand curve (excess supply), or on both (equilibrium). Our model is estimated by the full-information maximum likelihood approach with a numerical maximization of the likelihood function. Our basic findings show that significant decrease in credits after the financial crisis in the year 2007 was caused by low economic and investment activity and reject the hypothesis that there is a credit crunch in the Czech Republic.https://acta.mendelu.cz/63/3/0995/money supplymoney demandmaximum likelihood approachcreditfinancial crisiscredit crunch |
| spellingShingle | Lucie Režňáková Svatopluk Kapounek Is There a Credit Crunch in the Czech Republic? Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis money supply money demand maximum likelihood approach credit financial crisis credit crunch |
| title | Is There a Credit Crunch in the Czech Republic? |
| title_full | Is There a Credit Crunch in the Czech Republic? |
| title_fullStr | Is There a Credit Crunch in the Czech Republic? |
| title_full_unstemmed | Is There a Credit Crunch in the Czech Republic? |
| title_short | Is There a Credit Crunch in the Czech Republic? |
| title_sort | is there a credit crunch in the czech republic |
| topic | money supply money demand maximum likelihood approach credit financial crisis credit crunch |
| url | https://acta.mendelu.cz/63/3/0995/ |
| work_keys_str_mv | AT luciereznakova isthereacreditcrunchintheczechrepublic AT svatoplukkapounek isthereacreditcrunchintheczechrepublic |