Securitization and Economic Activity : The Credit Composition Channel

Using an international panel of 104 countries over the period 1995–2012, we analyze the relationship between country-level securitization and economic activity. Our findings suggest that securitization is negatively related to various proxies of economic activity – even prior to the crisis of 2007–2...

Full description

Bibliographic Details
Main Authors:	Bertay, Ata Can, Gong, Di, Wagner, Wolf
Format:	Journal Article
Published:	Elsevier 2018
Subjects:	SECURITIES MARKET SECURITIZATION ECONOMIC GROWTH COLLATERAL HOUSEHOLD CONSUMPTION HOUSEHOLD INVESTMENT
Online Access:	http://hdl.handle.net/10986/29435

id	okr-10986-29435
recordtype	oai_dc
spelling	okr-10986-294352021-05-25T10:54:34Z Securitization and Economic Activity : The Credit Composition Channel Bertay, Ata Can Gong, Di Wagner, Wolf SECURITIES MARKET SECURITIZATION ECONOMIC GROWTH COLLATERAL HOUSEHOLD CONSUMPTION HOUSEHOLD INVESTMENT Using an international panel of 104 countries over the period 1995–2012, we analyze the relationship between country-level securitization and economic activity. Our findings suggest that securitization is negatively related to various proxies of economic activity – even prior to the crisis of 2007–2009. We explain this finding as the results of securitization spurring consumption at the expense of investment and capital formation. Consistent with this, we find that securitization of household loans is negatively associated with economic activity, whereas business securitization displays a weak positive association with it, and that household securitization increases an economy's consumption-investment ratio. Our results inform recent initiatives aimed at reviving securitization markets, as they indicate that the impact of securitization crucially depends on the underlying collateral. 2018-03-07T21:53:15Z 2018-03-07T21:53:15Z 2017-02 Journal Article Journal of Financial Stability 1572-3089 http://hdl.handle.net/10986/29435 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Elsevier Publications & Research :: Journal Article Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	SECURITIES MARKET SECURITIZATION ECONOMIC GROWTH COLLATERAL HOUSEHOLD CONSUMPTION HOUSEHOLD INVESTMENT
spellingShingle	SECURITIES MARKET SECURITIZATION ECONOMIC GROWTH COLLATERAL HOUSEHOLD CONSUMPTION HOUSEHOLD INVESTMENT Bertay, Ata Can Gong, Di Wagner, Wolf Securitization and Economic Activity : The Credit Composition Channel
description	Using an international panel of 104 countries over the period 1995–2012, we analyze the relationship between country-level securitization and economic activity. Our findings suggest that securitization is negatively related to various proxies of economic activity – even prior to the crisis of 2007–2009. We explain this finding as the results of securitization spurring consumption at the expense of investment and capital formation. Consistent with this, we find that securitization of household loans is negatively associated with economic activity, whereas business securitization displays a weak positive association with it, and that household securitization increases an economy's consumption-investment ratio. Our results inform recent initiatives aimed at reviving securitization markets, as they indicate that the impact of securitization crucially depends on the underlying collateral.
format	Journal Article
author	Bertay, Ata Can Gong, Di Wagner, Wolf
author_facet	Bertay, Ata Can Gong, Di Wagner, Wolf
author_sort	Bertay, Ata Can
title	Securitization and Economic Activity : The Credit Composition Channel
title_short	Securitization and Economic Activity : The Credit Composition Channel
title_full	Securitization and Economic Activity : The Credit Composition Channel
title_fullStr	Securitization and Economic Activity : The Credit Composition Channel
title_full_unstemmed	Securitization and Economic Activity : The Credit Composition Channel
title_sort	securitization and economic activity : the credit composition channel
publisher	Elsevier
publishDate	2018
url	http://hdl.handle.net/10986/29435
_version_	1764469344455098368

Securitization and Economic Activity : The Credit Composition Channel

Similar Items