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Is there a financial accelerator in US banking? Evidence from the cyclicality of banks' price-cost margins
Journal article   Peer reviewed

Is there a financial accelerator in US banking? Evidence from the cyclicality of banks' price-cost margins

Roger Aliaga-Diaz and Maria Pia Olivero
Economics letters, v 108(2), pp 167-171
01 Aug 2010

Abstract

Business & Economics Economics Social Sciences
We show that price-cost margins for US banks are consistently countercyclical, even after controlling for credit risk, the term structure of interest rates and monetary policy. This evidence supports the existence of a "financial accelerator" in US banking. (C) 2010 Elsevier B.V. All rights reserved.

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Economics
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