How do banking crises affect aggregate consumption? Evidence from international crisis episodes

Research, Preprint English OPEN
Gerlach-Kristen, Petra; O'Connell, Brian; O'Toole, Conor;
  • Publisher: Dublin: The Economic and Social Research Institute (ESRI)
  • Subject: Weak Exogeneity | Panel Error Correction Model | Consumption | Housing Wealth | Financial Crises/Consumption/Housing Wealth/Panel Error Correction Model/Weak Exogeneity | Financial Crises
    • ddc: ddc:330

This paper considers the effect of systemic financial crises on aggregate consumption. Using a sample of 23 countries over 32 years, we find that consumption growth seems lower during banking crises, crises following credit booms and crises following house price booms. ... View more
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