Our model
• Many banks i=1,..N and two dates
• Time 0: Choice of investments &...negative externality e(W*-W1) on economy
Externality
W* = z A W1
Economic...
Increased importance of leasing after HNB regulatory measures
Modeling
Basic model...Comments, Suggestions, Questions
Why not try a simple structural supply-demand...
Data limitations
Empirical Model:
Data set construction:
Panel of non-overlapping...changes in mean GDP growth
Random effect estimation
Robust regression
...
