The main purpose of this paper is to identify the developments for bank credit allocation in Taiwan since 1994. Using a disequilibrium model, we evaluate whether there is a situation of excess demand, that is a credit crunch, or excess supply, that is a saving glut, during these periods. We find...

Breeden [<italic>J. Financial Econ.</italic>, 1979, <bold>7</bold>, 265--196], Grinols [<italic>J. Finance</italic>, 1984, <bold>39</bold>(5), 1571--1595] and Cox <italic>et al</italic>. [<italic>Econometrica</italic>, 1985, <bold>53</bold>, 363--384] describe the importance of including the supply side in capital asset pricing. Black [<italic>Am. Econ. Rev</italic>., 1976, <bold>66</bold>, 767--779] derives a dynamic,...

Breeden [Breeden, D. T. (1979). An intertemporal asset pricing model with stochastic consumption and investment opportunities. Journal of Financial Economics 7, 265-196] and Grinols [Grinols, E. L. (1984). Production and risk leveling in the intertemporal capital asset pricing model. The Journal...