Gerali, Andrea; Neri, Stefano; Sessa, Luca; Signoretti, … - Banca d'Italia - 2010
This paper studies the role of credit-supply factors in business cycle fluctuations. For this purpose, we introduce an … a link between the business cycle, which affects bank profits and thus capital, and the supply and cost of loans. The … model is estimated with Bayesian techniques using data for the euro area. The analysis delivers the following results. First …