Convergence in Household Credit Demand Across Euro Area Countries: Evidence from Panel Data

Olivier R de Bandt (1) , Catherine Bruneau (2) , Widad El Amri (2)

1 Economics
2 EconomiX - EconomiX

This paper contributes to the literature on the convergence of financial systems in the euro area by estimating household credit demand in individual countries. Using the ARDL framework advocated notably by Pesaran et al. (1999), the paper provides evidence on the convergence of long run credit demand determinants (interest rates, investment and house prices) in the largest euro area countries, while short run dynamics remain heterogenous across countries. The paper also demonstrates that the equation uncovers demand rather than supply behaviour.

Mots clés: Social Sciences & Humanities

Olivier R de Bandt, Catherine Bruneau, Widad El Amri. Convergence in Household Credit Demand Across Euro Area Countries: Evidence from Panel Data. Applied Economics, 2009, 41 (27), pp.3447-3462. ⟨10.1080/00036840701493774⟩. ⟨hal-00582203⟩