Can Italy grow out of its NPL overhang? A panel threshold analysis
Accepted version
Peer-reviewed
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Authors
Mohaddes, K
Raissi, M
Weber, A
Abstract
This paper examines whether a tipping point exists for real GDP growth in Italy above which the ratio of non-performing loans (NPLs) to total loans falls significantly. Estimating a heterogeneous dynamic panel–threshold model with data on 17 Italian regions over the period 1997–2014, we find that growth above 1.2%, if sustained for a number of years, is associated with a significant decline in the NPL ratio.
Description
Keywords
Italy, non-performing loans, growth, panel tests of threshold effects
Journal Title
Economics Letters
Conference Name
Journal ISSN
0165-1765
1873-7374
1873-7374
Volume Title
159
Publisher
Elsevier