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Crédito Al Sector Privado En República Dominicana (1997-2011): ¿Existe Evidencia De Racionamiento Del Crédito?

Ramirez, Francisco A. (2012): Crédito Al Sector Privado En República Dominicana (1997-2011): ¿Existe Evidencia De Racionamiento Del Crédito? Published in: Series de Estudios Económicos, Banco Central de la República Dominicana No. 7 (2012)

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Abstract

This study investigates the determinants of private credit in the Dominican Republic for the period 1997 to 2011. Using a disequilibrium model as in Gosh and Gosh (1999), the demand and supply functions of credit to private sector are estimated, and these results are used to analyzeepisodes of credit crunch. The main conclusion is that the evolution of private sector credit is eminently restricted by the supply side, with the availability of resources and the expected level of economic activity as the main drivers. On the demand side, the cost of borrowing carries a high weight. In fact, this variable, along with the level of activity, is the main determinant of credit demand.

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