Does more finance lead to longer crises?

نویسندگان

چکیده

Empirical studies emphasise that higher financial development (FD) amplifies the output cost of banking crises. However, no study has so far investigated effect FD on another key dimension crises, namely their duration. Using a large sample crises over 1977–2014 period, we find is associated with significant increase in duration (DBC). This result robust to broad range alternative specifications and unaffected by unobserved heterogeneity or endogeneity. Finally, show DBC subject nonlinearities varies across decades level economic development.

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ژورنال

عنوان ژورنال: The World Economy

سال: 2021

ISSN: ['1467-9701', '0378-5920']

DOI: https://doi.org/10.1111/twec.13159