The Economic Effects of a Borrower Bailout : Evidence from an Emerging Market

This paper studies the credit market implications and real effects of one the largest borrower bailout programs in history, enacted by the government of India against the backdrop of the 2008-2009 financial crisis. The study finds that the stimulus...

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Bibliographic Details
Main Authors:	Gine, Xavier, Kanz, Martin
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank Group, Washington, DC 2014
Subjects:	ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCOUNTING ADMINISTRATIVE BODY AFFORDABILITY AGRICULTURAL CREDIT AGRICULTURAL DEBT AGRICULTURAL LOANS AGRICULTURAL SECTOR AGRICULTURE ALLOCATION OF CREDIT AMOUNT OF CREDIT AMOUNT OF DEBT ASSETS AUDITS BAD DEBTS BAILOUT BAILOUTS BALANCE SHEET BALANCE SHEETS BANK BAILOUTS BANK BRANCH BANK BRANCHES BANK CREDIT BANK LENDING BANK LIQUIDITY BANK POLICY BANKING REGULATIONS BASE YEAR BENCHMARK BENEFICIARIES BENEFICIARY BORROWER BORROWER BEHAVIOR BORROWING BRANCH BANKING BUDGET DEFICITS BUSINESS CYCLES CD CENTRAL BANK CHECKS COLLATERAL COMMERCIAL BANKS COMMODITY PRICES CONDITIONAL DEBT CONSUMER CREDIT CONSUMER CREDIT CARD CONSUMERS CONSUMPTION EXPENDITURE CORRUPTION COST OF DEBT COSTS OF CREDIT CREDIT ALLOCATION CREDIT CONTRACTS CREDIT CULTURE CREDIT DISCIPLINE CREDIT LOSSES CREDIT MARKET CREDIT MARKETS CREDIT OUTSTANDING CREDIT RATIONING CREDIT SPREADS CREDITS DEBT DEBT CONTRACTS DEBT LEVELS DEBT OVERHANG DEBT RELIEF DEBT RESTRUCTURING DEBTS DEFAULT RATES DEFAULTERS DEFAULTS DEPENDENT DEVELOPMENT POLICY DISTRIBUTION OF CREDIT DUMMY VARIABLE DUMMY VARIABLES DURABLE ECONOMIC ACTIVITY ECONOMIC CRISIS ECONOMIC HISTORY ECONOMIC OUTCOMES ECONOMIC PERFORMANCE ECONOMIC POLICY ECONOMIC SHOCKS ECONOMIC TRENDS EFFECT OF DEBT ELASTICITY ELIGIBILITY CRITERIA ELIGIBLE BORROWERS EMERGING MARKET EMERGING MARKETS EMPLOYMENT EVERGREENING EXCLUSION EXISTING CREDIT EXTERNAL FINANCE EXTERNAL FINANCING FARM LOANS FARMERS FINANCIAL ASSISTANCE FINANCIAL CONSTRAINTS FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL SECTOR FINANCIAL SHOCKS FORECLOSURE FORECLOSURES FUTURE CREDIT GDP GOVERNMENT INTERVENTION GOVERNMENT SPENDING HOME EQUITY HOUSEHOLD DEBT HOUSEHOLD DEBTS HOUSEHOLDS HOUSING IMPACT OF DEBT INDEBTED INDEBTEDNESS INSTITUTIONAL CREDIT INSTITUTIONAL ENVIRONMENT INSTITUTIONAL ENVIRONMENTS INSTRUMENT INTERNATIONAL BANK KEY CHALLENGE LABOR MARKET LAND HOLDINGS LAND REFORMS LAND TENURE LEGISLATION LENDERS LENDING POLICIES LEVERAGE LOAN LOAN DEFAULTS LOAN DELINQUENCIES LOAN PAYMENTS LOAN PERFORMANCE LOAN REPAYMENT LOAN SIZE LOAN SIZES LOCAL BANK LOCAL BUSINESS MACROECONOMICS MANDATE MARKET CONDITIONS MARKET DATA MARKET FAILURES METROPOLITAN AREAS MICRO-DATA MICRODATA MONETARY VALUES MORAL HAZARD MORTGAGE MORTGAGE DEBT MORTGAGE HOLDERS MORTGAGE MARKET MORTGAGES NEW CREDIT NON-PERFORMING LOAN NON-PERFORMING LOANS NPL PENALTIES POLICY RESPONSE POLITICAL ECONOMY POSITIVE EFFECTS PRODUCTIVE INVESTMENT PRODUCTIVE INVESTMENTS PRODUCTIVITY RECAPITALIZATION RECAPITALIZATIONS RECESSIONS REGIONAL RURAL BANKS REINVESTMENT RENEGOTIATION REPAYMENT CAPACITY RESERVE RESERVE BANK RESERVE BANK OF INDIA RESTRUCTURING PROGRAM RESTRUCTURING PROGRAMS RETURNS RURAL BANKS RURAL CREDIT SETTLEMENT SETTLEMENTS SHARE OF CREDIT SHARE OF DEBT SHORT MATURITY SOCIAL BANKING SOURCE OF CREDIT SOURCE OF INFORMATION STATE BANKS SUPPLY OF CREDIT TAX TAX CODE TOTAL REVENUE TRANSPARENCY UNION VOTERS WAGES
Online Access:	http://documents.worldbank.org/curated/en/2014/11/20378033/economic-effects-borrower-bailout-evidence-emerging-market http://hdl.handle.net/10986/20656