Research article Special Issues

Lending Sociodynamics and Drivers of the Financial Business Cycle

  • Received: 01 May 2017 Accepted: 26 July 2017 Published: 12 October 2017
  • We extend sociodynamic modeling of the financial business cycle to the Euro Area and Japan. Using an opinion-formation model and machine learning techniques we find stable model estimation of the financial business cycle using central bank lending surveys and a few selected macroeconomic variables. We find that banks have asymmetric response to good and bad economic information, and that banks adapt to their peers' opinions when changing lending policies.

    Citation: Raymond J. Hawkins, Hengyu Kuang. Lending Sociodynamics and Drivers of the Financial Business Cycle[J]. Quantitative Finance and Economics, 2017, 1(3): 219-252. doi: 10.3934/QFE.2017.3.219

    Related Papers:

  • We extend sociodynamic modeling of the financial business cycle to the Euro Area and Japan. Using an opinion-formation model and machine learning techniques we find stable model estimation of the financial business cycle using central bank lending surveys and a few selected macroeconomic variables. We find that banks have asymmetric response to good and bad economic information, and that banks adapt to their peers' opinions when changing lending policies.


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