dos Santos, Paulo (2013) 'A cause for policy concern: the expansion of household credit in middle-income economies.' International Review of Applied Economics, 27 (3).
This article discusses the significance of the recent growth in household credit across a range of middle-income economies. This growth is understood primar- ily as a result of policy, including the promotion of individual borrowing as a means to fund access to housing, education and health. A formal model of credit extension and allocation is developed, establishing that consumption lend- ing makes a comparatively stronger contribution to aggregate pro␣tability as well as ␣nancial fragility than production lending. Consumption lending may be understood to create distinctive endogenous tendencies to credit-market instabil- ity. The ␣ndings point to the need for a critical reconsideration of reliance on this lending for social and macroeconomic policy.
|SOAS Departments & Centres:||Faculty of Law and Social Sciences > Department of Economics|
|Depositing User:||Paulo dos Santos|
|Date Deposited:||18 Oct 2012 15:26|
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