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Three Essays On The Relationship Between The Banking Sector, The Real Sector, And The Political Environment, Woocheon Jeong
Three Essays On The Relationship Between The Banking Sector, The Real Sector, And The Political Environment, Woocheon Jeong
Graduate Theses, Dissertations, and Problem Reports
Essay one. Does the banking sector affect the real sector? Does the real sector affect the banking sector? Do both sectors affect each other? This essay tries to answer these questions. The positive answer to the first question relates to the credit-view hypothesis that the quality and quantity of the banking sector or bank health affect aggregate economic performance.;Variance decomposition and the impulse-response function of the vector error correction model (VECM) estimates provide strong evidence that interdependence exists between these sectors in the U.S. for the period 1942--1996.;Thus, there are links between bank health, bank loans, and economic performance (i.e. …