Securitization and Economic Activity

• Tác giả: Ata Can Bertay
• Ngôn ngữ: eng
• Ký hiệu phân loại: 327.11 Specific means of attaining foreign policy goals
• Thông tin xuất bản: Elsevier, 2018
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 311893
• Chủ đề: 1. COLLATERAL; 2. ECONOMIC GROWTH; 3. HOUSEHOLD CONSUMPTION; 4. SECURITIES MARKET; 5. SECURITIZATION

Tóm tắt

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.