Repository logo
 

Can Italy grow out of its NPL overhang? A panel threshold analysis

Accepted version
Peer-reviewed

Type

Article

Change log

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

Volume Title

159

Publisher

Elsevier
Relationships
Is derived from: