Is the Conventional View of Discount Window Borrowing Consistent with the Behavior of Weekly Reporting Banks?

A-Tier
Journal: Review of Economics and Statistics
Year: 1994
Volume: 76
Issue: 4
Pages: 761-70

Authors (2)

Cosimano, Thomas F (not in RePEc) Sheehan, Richard G (University of Notre Dame)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

Discount window borrowing by weekly reporting banks disaggregated by Federal Reserve district is used to estimate Marvin Goodfriend's (1983) model of borrowed reserves. Little evidence is found to support the argument that a bank's borrowing decision is determined by the spread between the funds rate and the discount rate and by prior bank borrowing. A weekly reporting bank has only a 2.7 percent chance of visiting the discount window during any given maintenance period. This result is consistent with the presence of considerable harassment costs imposed by the discount window officer. Copyright 1994 by MIT Press.

Technical Details

RePEc Handle
repec:tpr:restat:v:76:y:1994:i:4:p:761-70
Journal Field
General
Author Count
2
Added to Database
2026-01-25