Does bank lending affect output? evidence from the U.S. states
By: John C. Driscoll.
Series: Finance and economics discussion series ;; 2003-31; Finance and economics discussion series (Online) ;; 2003-31.
Publisher: Federal Reserve Board
Published: 2003
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Subjects: Bank loans -- United States -- States.; Demand for money -- United States -- States.
Description: "This paper uses a panel of state-level data to test whether changes in bank loan supply affect output.  Since the U.S.  states are small open economies with fixed exchange rates, state-specific shocks to money demand are automatically accommodated, leading to changes in lending if banks rely on deposits as a source of funding.  Using these shocks as an instrumental variable, I find that shocks to money demand have large and statistically significant effects on the supply of bank loans, but loans have small, often negative, and statistically insignificant effects on output"--Federal Reserve Board web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 7/23/2004.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.