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Testing a Disequilibrium Model of Lending Rate Determination : The Case of Malaysia / Barry Scholnick.
- Format:
- Book
- Government document
- Author/Creator:
- Scholnick, Barry.
- Series:
- IMF Working Papers; Working Paper ; No. 1991/084
- IMF Working Papers
- Language:
- English
- Physical Description:
- 1 online resource (43 pages)
- Place of Publication:
- Washington, D.C. : International Monetary Fund, 1991.
- Language Note:
- English
- Summary:
- This study examines whether lending rates cleared the market for loans in Malaysia after interest rate liberalization. It is based on a theoretical model in which adverse selection and marginal cost pricing are brought together by the use of a quadratic loss function in the error correction format. This allows for the use of the cointegration methodology. Long-run tests support the model proposed in the paper, while rejecting part of the financial liberalization model. From the short-run results it is concluded that there is a large lag before lending rates respond to exogenous shocks, thus confirming that they do not fully clear the market for loans.
- Notes:
- Bibliographic Level Mode of Issuance: Monograph
- Description based on print version record.
- ISBN:
- 9781455247486
- 1455247480
- 9781462399413
- 146239941X
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