TY  - BOOK
AU  - Scholnick,Barry
TI  - Testing a Disequilibrium Model of Lending Rate Determination: The Case of Malaysia 
T2  - IMF Working Papers; Working Paper
SN  - 1451954360 :
SN  - 1018-5941
PY  - 1991///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Banking
KW  - imf
KW  - Cointegration
KW  - Equation
KW  - Probability
KW  - Statistics
KW  - Malaysia
N2  - 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
UR  - http://elibrary.imf.org/view/IMF001/06758-9781451954364/06758-9781451954364/06758-9781451954364.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451954364
ER  -