Abstract
We examine to what extent there exists heterogeneity in the causes of a banking crisis. For this purpose, we use a random coefficient logit model including 110 countries between 1970 and 2007. We conclude that there exists significant heterogeneity in the causes of a banking crisis. We find that a high credit growth, a negative GDP growth and a high real interest rate are on average the most important causes of a banking crisis. However, none of the variables has a significant impact in more than 60 percent of the banking crises. Besides we find that the impact of the determinants differ between systemic and non-systemic crises and across stages of economic development.
Original language | English |
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Pages (from-to) | 72-87 |
Journal | The North American Journal of Economics and Finance |
Volume | 21 |
Issue number | 1 |
DOIs | |
Publication status | Published - 2010 |
Keywords
- models