Journal article
Credit constraints and GDP growth: Evidence from a natural experiment
Economics letters, Vol.181, pp.190-194
08/01/2019
DOI: 10.1016/j.econlet.2019.05.037
Abstract
Before 1998, Texas was the only state that greatly restricted home equity loans and cash-out refinancing for non-housing consumption. Such borrowing was authorized in Texas, for the first time, through a constitutional amendment in 1998. Using state-level panel data and recently developed synthetic control methods based on machine learning we find that the Texas' constitutional amendments relaxing credit constraints had an insignificant impact on GDP growth. Our findings have important policy implications for the stimulative effect of easier home equity access on GDP growth. (C) 2019 Elsevier B.V. All rights reserved.
Details
- Title: Subtitle
- Credit constraints and GDP growth: Evidence from a natural experiment
- Creators
- Anil Kumar - Federal Reserve Bank of DallasChe-Yuan Liang - Uppsala University
- Resource Type
- Journal article
- Publication Details
- Economics letters, Vol.181, pp.190-194
- Publisher
- Elsevier
- DOI
- 10.1016/j.econlet.2019.05.037
- ISSN
- 0165-1765
- eISSN
- 1873-7374
- Number of pages
- 5
- Language
- English
- Date published
- 08/01/2019
- Academic Unit
- Economics
- Record Identifier
- 9984618511902771
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