Identifying Credit Supply Shocks in Turkey
Title: |
Identifying Credit Supply Shocks in Turkey |
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Number: |
19/06 |
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Author(s): |
Tayyar Büyükbaşaran, Gökçe Karasoy Can, Hande Küçük |
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Language: |
English |
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Date: |
February 2019 |
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Abstract: |
This paper aims to identify credit supply shocks and analyse their macroeconomic effects in Turkey. For this purpose, we use a Bayesian Structural Vector Autoregression (SVAR) with sign and zero restrictions. We focus on the impact of credit supply shocks on real GDP growth and highlight how the size of this impact changes when we explicitly account for the effects of capital inflows on credit conditions. Hence, our results confirm the importance of external finance for credit supply in Turkey. Our main findings are robust to some alternative data choices, prior selections as well as some alternative identifying restrictions. |
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Keywords: |
Credit supply shocks, SVAR, Bayesian VAR, Sign and zero restrictions |
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JEL Codes: |
C11; C32; E52; F41 |