A new IV approach for estimating the efficacy of macroprudential measures

C-Tier
Journal: Economics Letters
Year: 2018
Volume: 168
Issue: C
Pages: 107-109

Authors (3)

Gadatsch, Niklas (not in RePEc) Mann, Lukas (not in RePEc) Schnabel, Isabel (Rheinische Friedrich-Wilhelms-...)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We propose a new identification strategy to assess the efficacy of macroprudential measures. We use a novel instrumental variable based on the idea that a politically sensitive macroprudential measure is more likely to be implemented if a politically independent institution, such as a central bank, is in charge. Our results show that borrower-based macroprudential measures have had a strong and statistically significant dampening effect on credit growth in the European Union.

Technical Details

RePEc Handle
repec:eee:ecolet:v:168:y:2018:i:c:p:107-109
Journal Field
General
Author Count
3
Added to Database
2026-01-29