Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2093766
Variability in the impacts of partisan conflict: a new perspective from bank credit
Xuan Hu
Kai Shi
Li Nie
Meng Yan
Sažetak
The purpose of this article is to analyse the impact of partisan conflict
on bank credit, and take the global financial crisis as the time
node to analyse the variability of this impact before and after the
financial crisis. This article examines the impacts of partisan conflict
on the bank credit by employing the US data covering the past
40 years and captures the variability in the effects of partisan conflict
based on the rolling sample and time-varying parameter VAR
analysis. The full sample results reveal that one standard deviation
partisan conflict shock will shrink the bank credit growth rate to
nonfinancial sectors, and the negative effects of partisan conflict on
bank credit are more substantial after the global financial crisis. The
rolling sample and time-varying parameter VAR analysis further confirm
that the impacts of partisan conflict shock have varied substantially
over time, where bank credit still negatively reacts to the
impacts of partisan conflict in recent periods. Additionally, we estimate
two extended models and support the intermediate role of
economic policy uncertainty in transmitting the partisan conflict
and the substitution effect of cross-border bank lending on domestic
bank credit. Finally, our major results are unchanged by performing
a series of robustness checks. The conclusion of this article is
that partisan conflict has a significant impact on bank credit and
shows obvious variability, which is more significant after the global
financial crisis.
Ključne riječi
Partisan conflict; bank credit; rolling sample VARs; time-varying parameter VARs; economic policy uncertainty
Hrčak ID:
304191
URI
Datum izdavanja:
31.3.2023.
Posjeta: 167 *