How Does Fiscal Policy Affect Bank Credit? Evidence from China
Using a set of Chinese economic data and a structural vector autoregression (SVAR) model, this paper investigates the transmission channels of fiscal policy to bank credit in China. We find that increases in tax revenue can increase bank credit through external financing premium channel, collateral...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Wiley
2021-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2021/6790245 |
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| _version_ | 1849686337269006336 |
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| author | Huan Yan Weiguo Xiao Qi Deng Sisi Xiong |
| author_facet | Huan Yan Weiguo Xiao Qi Deng Sisi Xiong |
| author_sort | Huan Yan |
| collection | DOAJ |
| description | Using a set of Chinese economic data and a structural vector autoregression (SVAR) model, this paper investigates the transmission channels of fiscal policy to bank credit in China. We find that increases in tax revenue can increase bank credit through external financing premium channel, collateral channel, and bank liquidity channel. We also find that increases in government spending can reduce bank credit through bank liquidity channel and increase bank credit through external financing premium channel and collateral channel. |
| format | Article |
| id | doaj-art-c57569e76d294b99a3a04a89b6fa2d78 |
| institution | DOAJ |
| issn | 1607-887X |
| language | English |
| publishDate | 2021-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-c57569e76d294b99a3a04a89b6fa2d782025-08-20T03:22:44ZengWileyDiscrete Dynamics in Nature and Society1607-887X2021-01-01202110.1155/2021/6790245How Does Fiscal Policy Affect Bank Credit? Evidence from ChinaHuan Yan0Weiguo Xiao1Qi Deng2Sisi Xiong3Economics and Management SchoolEconomics and Management SchoolEconomics and Management SchoolEconomics and Management SchoolUsing a set of Chinese economic data and a structural vector autoregression (SVAR) model, this paper investigates the transmission channels of fiscal policy to bank credit in China. We find that increases in tax revenue can increase bank credit through external financing premium channel, collateral channel, and bank liquidity channel. We also find that increases in government spending can reduce bank credit through bank liquidity channel and increase bank credit through external financing premium channel and collateral channel.http://dx.doi.org/10.1155/2021/6790245 |
| spellingShingle | Huan Yan Weiguo Xiao Qi Deng Sisi Xiong How Does Fiscal Policy Affect Bank Credit? Evidence from China Discrete Dynamics in Nature and Society |
| title | How Does Fiscal Policy Affect Bank Credit? Evidence from China |
| title_full | How Does Fiscal Policy Affect Bank Credit? Evidence from China |
| title_fullStr | How Does Fiscal Policy Affect Bank Credit? Evidence from China |
| title_full_unstemmed | How Does Fiscal Policy Affect Bank Credit? Evidence from China |
| title_short | How Does Fiscal Policy Affect Bank Credit? Evidence from China |
| title_sort | how does fiscal policy affect bank credit evidence from china |
| url | http://dx.doi.org/10.1155/2021/6790245 |
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