Credit Expansion Research Articles

The Case for Advocacy Curricula and Opportunities in Medical Education: Past Examples to Inform Future Instruction.

With recent advances in understanding racial, socioeconomic, and mental health issues in medicine and their relation to policy and legislation, medical professionals are increasingly involved in local and national advocacy efforts. At the frontlines of these initiatives are medical students who, in addition to completing required coursework and clinical training, devote themselves to serving patients through civic participation. The burgeoning evidence concerning health care disparities and inequity, along with greater awareness of racial and socioeconomic discrimination, have made advocacy an essential aspect of many students' medical training. Every year, thousands of medical students join national medical advocacy organizations, in addition to regional, state, and local groups. Despite the rich history of medical student involvement in advocacy, there remains much speculation and skepticism about the practice as an essential component of the medical profession. From early initiatives pushing for national health insurance after World War II to encouraging anti-discrimination policies and practices, medical students have been collectively working to create change for themselves and their patients. Through efforts such as banning smoking on airplanes, creating safe syringe programs, and protesting against police brutality, many medical students work tirelessly in advocacy despite minimal educational support or guidance about the advocacy process. Given that medical student advocacy continues to grow and has shown measurable successes in the past, the authors believe that these efforts should be rewarded and expanded upon. The authors examine historical examples of medical student advocacy to suggest ways in which advocacy can be integrated into core medical school curricula and activities. They call attention to opportunities to support students' development of knowledge and skills to facilitate legislative change, expansion of interprofessional collaborations and credit, and curricular updates to promote social and health equity.

Does Pakistan's Fiscal Deficit Curb Economic Growth? An ARDL Bound Testing Methodology

This study examines Pakistan's fiscal deficit dilemma with an emphasis on economic development. The ARDL technique was used to analyze secondary data from 1982 to 2020 for the study. The results suggest that fiscal deficits financed by debt may involve only the allocation of financial capitals from the private firms to the public sector and can hurt economic development. According to the study, Pakistan's fiscal deficit is the result of ineffectiveness in the tax structure and a high proportion of unproductive outlays, including security, debt repayment, and needless parliamentary spending. The research also includes recommendations for addressing the deficit problem. The primary objective of government policies is to restrict excessive domestic credit expansion to evade the contrary impact of fiscal deficit. Additionally, the authorities must reduce the loaning rate to encourage a vigorous investment climate, which will increase employment prospects and government income.

Credit Allocation and Macroeconomic Fluctuations

Abstract We study the relationship between credit expansions, macroeconomic fluctuations, and financial crises using a novel database on the sectoral distribution of private credit for 117 countries since 1940. We document that, during credit booms, credit flows disproportionately to the non-tradable sector. Credit expansions to the non-tradable sector, in turn, systematically predict subsequent growth slowdowns and financial crises. In contrast, credit expansions to the tradable sector are associated with sustained output and productivity growth without a higher risk of a financial crisis. To understand these patterns, we show that firms in the non-tradable sector tend to be smaller, more reliant on loans secured by real estate, and more likely to default during crises. Our findings are consistent with models in which credit booms to the non-tradable sector are driven by easy financing conditions and amplified by collateral feedbacks, contributing to increased financial fragility and a boom–bust cycle.

On the economic impacts of mortgage credit expansion policies: Evidence from help to buy

We take advantage of two spatial discontinuities in Britain's Help to Buy (HtB) scheme to explore the effectiveness and distributional implications of mortgage credit expansion policies. Employing a Difference-in-Discontinuities design, we find that HtB significantly increased house prices and had no detectable effect on construction volumes in severely supply constrained and unaffordable Greater London. Conversely, HtB did increase construction numbers without a noticeable effect on prices near the English/Welsh border, an affordable area with comparably lax supply conditions. While HtB did not help would-be-buyers in already unaffordable areas, it boosted the financial performance of developers participating in the scheme.

How Credit Constraints Impact Job Finding Rates, Sorting, and Aggregate Output

Abstract How do consumer credit markets affect the allocation of workers to firms, output, and labour productivity? We address this question in two steps. First, we use new micro-data to estimate empirical elasticities of job search patterns to credit. Second, we estimate our novel theory of sorting under risk aversion to match these elasticities, and then we conduct aggregate counterfactuals. Empirically, we show that an increase in credit limits worth 10% of prior annual earnings allows individuals to take 0.33 weeks longer to find a job. Conditional on finding a job, they earn 1.85% more and work at higher paying firms. We also find that young and high-utilization individuals are more responsive to credit. Theoretically, we integrate risk aversion and borrowing into a model with worker and firm heterogeneity. We estimate the model to match our new empirical elasticities, and we then measure how the credit expansion from 1964 to 2004 affected sorting and output. Sorting improves as credit expands since constrained workers—in particular constrained, young, high human capital workers—find more capital-intensive jobs.

Stuck in 2012: The hesitant geographies of European financial integration since the Eurozone crisis

At the heart of the Eurozone crisis was a dramatic divergence in interest rates between member states and a reversal of previously booming cross-border credit expansion from ‘core’ to ‘periphery’ by European banks. The resulting crisis and retreat behind national borders across the Eurozone challenged European elites’ decade-long project of producing European scale as a space for financial accumulation. The Eurozone crisis has been well-described but post-crisis geographies of financial integration have received limited attention. We chart the financial positionality of member states and the relations between them in the period 2012–2019 using a variety of metrics including intra-Eurozone cross-border bank lending. The post-crisis period is dominated by the European Central Bank’s determination to do ‘whatever it takes’ to save the Euro and its financial system. The resulting asset purchases give it a qualitatively different place in the Eurozone financial system and end the crisis period’s retreat behind national borders. But they do not restore pre-crisis dynamics, and, in addition, unevenness along national lines remains. The crisis era core and peripheral labels still hold but the data also reveal important nuances: not least that the distribution of giant banks matters and offshore financial centres cut across core/periphery boundaries. Yet, even as there is no return to booming core-to-periphery credit, German lending into the Eurozone and its counterpart, Italian borrowing, symbolizes the continuing fragility of the Eurozone banking system. European Central Bank efforts ended the crisis, but more than asset purchases will be required if we are not to remain stuck in 2012.

Employment and Labor Supply Responses to the Child Tax Credit Expansion: Theory and Evidence

The 2021 Child Tax Credit (CTC) expansion increased government benefits to families, and especially to families with the lowest incomes. Economic theory predicts that this policy intervention would have led to a reduction in labor supply among adults in those families. Our review of available research suggests that employment within broadly defined demographic groups was not reduced by the 2021 CTC changes. However, we see some evidence that employment was reduced among unmarried mothers with relatively low levels of education and young children—the demographic group that was most affected by the CTC expansion.

Evaluating the Effects of the 2021 Expansion of the Child Tax Credit: The International Comparative Context

We provide an overview of child benefit programs in high-income countries, particularly in comparison to the 2019 and expanded 2021 U.S. Child Tax Credit (CTC). Most countries included in our review provide child benefits that are more generous than the 2019 (and current) U.S. CTC, aligning more closely to the parameters of the now-expired 2021 expanded CTC. We show that while the expanded U.S. CTC was in effect, the U.S. significantly improved its ranking within the Organisation for Economic Co-operation and Development (OECD) in terms of lowering child poverty rates and the effectiveness of its redistribution system on poverty alleviation. Our cross-country analysis further reveals that the refundable and monthly payment structure of the expanded 2021 CTC was in keeping with prevailing models of child benefits internationally.

The Effects of the 2021 Child Tax Credit on Child Developmental Outcomes

Child poverty fell to historic lows in 2021, in large part due to the temporary expansion of the Child Tax Credit (CTC). We consider the possible implications of this expansion on children’s short- and long-term development. To do so, we review the available short-run evidence from the 2021 expansion and the existing research evidence on the longer-run effects of similar income transfers in childhood on child health and human capital. We conclude that the CTC likely improved child health and well-being in the short and long run, with greater impacts for poor children and modest or nonexistent effects for nonpoor children. Moreover, the effects might be more substantial for younger children and for those in places with weaker safety nets.

The Effects of the 2021 Child Tax Credit on Poverty

The 2021 expansion of the Child Tax Credit (CTC) was a noticeable increase in government support to families with children: it provided more cash, it was not tied to work requirements, and the full amount of the potential benefit was paid by families even if the credit exceeded taxes owed (whereas previously, the maximum amount it could cover was less than the full amount if it exceeded taxes and receipt required earnings). I evaluate its effects on poverty, showing that the expansion contributed to a large decline in child poverty in 2021—and a subsequent rise in 2022, when the benefit expired. I also explain why we cannot yet determine a precise causal effect: we cannot yet account for the behavioral changes among beneficiaries that the expanded CTC may have provoked, and annual census poverty measures may not yet fully account for the tax credits that individuals receive. I discuss attendant issues in theoretical and technical detail, arguing that it will take time to establish a full accounting of the program’s effects.

The Effects of the 2021 Child Tax Credit on Food Insecurity and Financial Hardship

We review the literature on the expansion of the Child Tax Credit in 2021, as it relates to food and financial hardship among households with children in the U.S. Extant scholarship consistently finds that receipt of the expanded tax credit is associated with an increase in food purchases and declines in food insufficiency and food insecurity. The effects of the tax credit expansion also vary by the socioeconomic characteristics of families. There are important differences, though, in effect sizes across studies, indicating that data sources, timeframe of analysis, and the way in which food hardship is measured all matter to the accurate estimation of effects. The effect of the credit on financial hardship is less conclusive, with the literature finding generally insignificant effects on measures such as difficulty paying rent or bills.

The Effects of the 2021 Child Tax Credit on Racial and Ethnic Inequalities in Well-Being

Evidence from the temporary expansion of the Child Tax Credit (CTC) in 2021 suggests it helped to reduce family poverty, lessen food hardship, and increase families’ financial expenditures on children across race and ethnicity. We review recent evidence on the impacts of the CTC on differences in well-being across race and ethnicity, including differences in access to the tax credit, how families used the tax credit, and the food insecurity and mental health circumstances of those families. We supplement our review of extant research with an analysis of racial income inequality using nationally representative data from the Current Population Survey: we find that the 2021 CTC expansion is associated with lowered Black–white and Hispanic–white income inequality in the bottom half of the income distribution, particularly at the 10th and 25th percentiles.

What We Learned from the 2021 Child Tax Credit Expansion

The 2021 expansion of the Child Tax Credit (CTC) greatly increased the amount of financial support that families received from the credit and guaranteed the fully refundable benefit to all lower-income families with children, while continuing to pay half of the annual benefits monthly. Child poverty fell to its lowest level ever (5.2 percent) after the expansion but returned to its pre-pandemic level (12.4 percent) in 2022 upon the expansion’s elimination. Notwithstanding the fact that a number of research questions about the exact effects of the 2021 expansion are yet to be answered, the articles in this volume present a strong case for a continued economic and social investment in the form of a longer-term child allowance. This summary discusses a number of key design issues for policies that aim to reduce child poverty, and I argue for research that can further substantiate the effects of a fully refundable CTC.

Implementing the Expanded Child Tax Credit: What Worked, What Didn’t, and How to Move Forward

The Child Tax Credit (CTC) expansion was an extraordinary experiment not just in policy design but also in policy implementation. As such, it cast light on the possibilities and blind spots of using the tax system to deliver safety-net benefits. The rapid and widespread take-up of the benefit reflected the use of a specific implementation tool that reduced administrative burden for the public: auto-enrollment via the tax system. But use of this tool also excluded families who could benefit from the program but were disconnected from the tax system. These tended to be families with the lowest incomes. Thus, while the CTC expansion offered a classic example of “targeting within universalism” by broadening a policy’s beneficiaries while making it more redistributive, its implementation revealed that a different sort of targeting is needed to reach those with the lowest incomes and to achieve the hoped-for redistributive impact.

Spending Responses to the Child Tax Credit Expansions

This article summarizes research literature that has studied how people used the advance Child Tax Credit (CTC) payments that were disbursed by the IRS in 2021. Four primary findings emerge. The ways in which families used the advance CTC payments varied: during the first few months the payments were being distributed, families reported paying down debt more frequently; and in the final months of the payments, families reported more frequent spending. Families primarily used the monthly CTC on household necessities and child-related spending. There was heterogeneity in the spending response across income and race. Lastly, the CTC helped families deal with rising inflation. We discuss these four findings from the extant research in detail.

The Consequences of the 2021 Child Tax Credit Expansion: An Introduction to the Volume

The American Rescue Plan Act of 2021 temporarily transformed the Child Tax Credit (CTC) into a more generous cash benefit that was more frequently distributed to families with children in the U.S. From July to December 2021, the families of more than 90 percent of U.S. children received monthly cash payments of up to $250 per child (or $300 per young child under six); and at tax time in 2022, families received lump-sum tax refunds of up to $1,500 per child (or $1,800 per young child). Many of these families had not previously had access to the full credit because their incomes were too low. The temporary expansion was not made permanent, and the CTC returned to its pre-expansion structure in 2022. This volume evaluates the effects of the 2021 CTC expansion, and this introduction provides broad context around the expansion, elaborates on the goals for the volume, and previews the volume’s subsequent contributions.

Andhra Pradesh State Cooperative Bank: credit beyond convention

Learning outcomes After reading and analysing the case study, the students would be able to understand the various challenges in terms of credit expansion for a rural co-operative bank, discuss the role of an apex co-operative bank within the three-tier credit structure, understand the co-operative banks’ product offerings in the agribusiness space and understand the various styles of leadership and change management models within a rural bank. Case overview/synopsis This case study exemplified the enabling role played by a co-operative credit institution, Andhra Pradesh State Co-Operative Bank (APCOB). It discussed the issues and challenges APCOB faced in mainstreaming an unconventional lending process through its lower tiers. Although the three-tier credit structure played a significant role in the disbursal of short-term loan to farmers, the managing director strongly felt the need to reach out to farmer institutions like farmer producers organization through suitable product offering and right processes. Complexity academic level This case study could serve as an introduction to rural credit co-operatives in MBA courses such as bank management, agricultural finance and rural credit and organizational behaviour. The case study could also be administered as a part of training programmes for state co-operative banks, district central co-operative banks and urban co-operative bank that are involved in planning and execution of development strategies in the area of co-operative banking and agribusiness development. Supplementary materials Teaching notes are available for educators only Subject code CSS: 1: Accounting and Finance.

Does Financial Inclusion Affect Financial Stability In Low-income Countries?

Inclusive financial system, a breakthrough on the way of exploiting the potentiality and opportunities of an economy which is considered as a prerequisite for Sustainable Development Goals (SDGs) around the globe, especially in the low-income economies apart from their economic and financial development. This scenario raises a question, whether financial inclusion ensures or degrades financial stability in low-income economies. A number of studies have been performed on this issue and have suggested both positive and negative ways in which financial inclusion could affect financial stability. But most of those studies were based on abroad sample of countries, including many high-income economies. This paper contributes to the existing literature on this subject by estimating the effect of financial inclusion on financial stability, especially on low-income economies. After analyzing the causal relationship, this paper finds that ensuring financial inclusion by greater ‘usage’ and ‘access’ of financial system contributes positively to the financial stability in low-income economies by reducing the NPL ratio and increased gross interest margin, even though it might cost with lower return on assets, increased non-interest expenses to maintain the additional credit expansion, and permitting some under-standard loans leading to disturbances in financial markets which are nominal in comparison with the benefit of fueling the productive sectors of the low-income economies. These findings suggest that policy measures to increase financial inclusion by ensuring easy access and greater usage would facilitate the financial stability in low-income economies.

The term effect of financial cycle variables on GDP growth

We study how current financial cycle variables (house prices, credit-to-GDP, and share prices) influence the entire distribution of future GDP growth. Changes in financial cycle variables affect borrowers’ and lenders’ balance sheets, resulting in the lower quantile of GDP growth to be more sensitive to the financial accelerator, while the upper quantiles are relatively stable over horizons. We also find the combination of the rapid growth in asset prices and higher leverage amplifies the effect of asset prices on the downside of GDP growth. Moreover, we rely upon financial cycles constructed using two popular methods to investigate the impact on the distribution of GDP growth. The findings are consistent with the impact of financial cycle variables. In addition, we execute a series of robustness tests and find that the results survive. Our results suggest that policymakers should consider the risk-return tradeoff between economic growth and financial stability in the term structure emanating from macro-financial linkages. Specifically, policies regarding credit expansion and contraction combined with the regulation of house and equity prices should be calibrated to the state of GDP growth.

Overcoming the Global Economic Crisis in The Perspective of Islamic Finance

This paper makes a connection between the global financial crisis and an Islamic financial model. The goal is to downplay the severity and frequency of the financial crisis by sharing risk among financial participants. This is accomplished through a system of shared credit creation. When purchasing real goods and services from people who have them and need to sell, people are given access to credit that they can use to buy what they need. Both sellers and buyers want to receive delivery of their purchased items, so the system creates economic growth through increased credit availability. Studying Islamic finance literature allows people to explore the possibilities and restrictions of inherited situations. This leads to new financial design solutions for the current financial crisis as well as future financial collapses. It also uses critical thinking and analysis to create new possibilities and constraints in situations. New financial systems should use a business model based on shared profits and losses. This was based on academic studies and doesn’t include any real-world testing. By incorporating Islamic financial principles into business practices, a new financial model could help finance businesses. This alternate system for the banking system could help control our financial system and encourage economic growth through more controlled credit expansion TRANSLATE with x EnglishArabicHebrewPolishBulgarianHindiPortugueseCatalanHmong DawRomanianChinese SimplifiedHungarianRussianChinese TraditionalIndonesianSlovakCzechItalianSlovenianDanishJapaneseSpanishDutchKlingonSwedishEnglishKoreanThaiEstonianLatvianTurkishFinnishLithuanianUkrainianFrenchMalayUrduGermanMalteseVietnameseGreekNorwegianWelshHaitian CreolePersian // TRANSLATE with COPY THE URL BELOW Back EMBED THE SNIPPET BELOW IN YOUR SITE Enable collaborative features and customize widget: Bing Webmaster PortalBack// This page is in English Translate to Indonesian AfrikaansAlbanianAmharicArabicArmenianAzerbaijaniBengaliBulgarianCatalanCroatianCzechDanishDutchEnglishEstonianFinnishFrenchGermanGreekGujaratiHaitian CreoleHebrewHindiHungarianIcelandicIndonesianItalianJapaneseKannadaKazakhKhmerKoreanKurdish (Kurmanji)LaoLatvianLithuanianMalagasyMalayMalayalamMalteseMaoriMarathiMyanmar (Burmese)NepaliNorwegianPashtoPersianPolishPortuguesePunjabiRomanianRussianSamoanSimplified ChineseSlovakSlovenianSpanishSwedishTamilTeluguThaiTraditional ChineseTurkishUkrainianUrduVietnameseWelsh Always translate English to IndonesianPRO Never translate English Never translate ejournal.iainpalopo.ac.id