Discussion on
Download
1 / 7

Bostjan Jazbec IMF Senior Advisor to the Governor Central Bank of the Republic of Kosovo - PowerPoint PPT Presentation


  • 71 Views
  • Uploaded on

Discussion on The Anatomy of Household Debt Build Up: What are the Implications for the Financial Stability in Croatia?. Bostjan Jazbec IMF Senior Advisor to the Governor Central Bank of the Republic of Kosovo Dubrovnik, 25 June, 2010. Quick Overview.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Bostjan Jazbec IMF Senior Advisor to the Governor Central Bank of the Republic of Kosovo' - kyoko


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Discussion on The Anatomy of Household Debt Build Up: What are the Implications for the Financial Stability in Croatia?

BostjanJazbec

IMF Senior Advisor to the Governor

Central Bank of the Republic of Kosovo

Dubrovnik, 25 June, 2010


Quick overview
Quick Overview

  • Neatly defined goal of the paper: what are the implications for financial stability in Croatia?

  • Great literature review

  • Search for treshold of vulnerability

    • Three approaches: objective, subjective, and administrative

  • Aim: follow the changes in the distribution of household debt


  • Problems with econometrics
    Problems with econometrics?

    • Mostly solved:

      • Non-random sample of indebted households

      • Macro vs. micro

      • Quantile regression with correction for sample selection bias + Machado and Mata decomposition method


    Data

    • Household Budget Survey (HSB) vs. macro data: discrepancy in debt exposure

      • How to account for that in your model?

  • Surprisingly mild rise of the proportion of indebted households from 2005 to 2008

  • Focus on different categories of loan takers instead: isn’t that a little bit too detailed? (Table 2)


  • Understanding the paper
    Understanding the paper

    • Calculating the probabilities of having debt in 2008 prior of having debt in 2005

    • What is interesting is the Machado-Mado decomposition of household debt growth!

      • Banks are relaxing standards

      • Building up the existing debt

  • What about new debt?


  • How i would understand it better
    How I would understand it better?

    • Data on banks’s exposure

    • Further elaboration on Table 2

    • More on macro vs. micro evidence

    • 2009?

    • What is the implication for financial stability in Croatia?


    ad