Mutarindwa, Samuel; Schäfer, Dorothea; Stephan, Andreas - In: Emerging Markets Review 43 (2020)
This paper focuses on the identification of the causal relationship between central banks' supervisory guidance and … considerable cross-country heterogeneity in providing supervisory guidance. Our recursive two-equation system is equivalent to an … endogenous treatment effect model in which the treatment is the provision of supervisory guidance. We find that institutional …