Banking Crisis Dates and Output Losses Following Crises

Akbar Mousavi, Seyed Saleh; Salmani, Behzad

doi:10.22054/joer.2022.65183.1023

Document Type : Research Paper

Authors

¹ Ph.D. in Economics, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran

² Professor, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran

https://doi.org/10.22054/joer.2022.65183.1023

Abstract

The purpose of this study is to determine banking crisis dates in four different groups of countries and also to calculate four alternative measures of real output losses in the year of the banking crisis and three years later, over the period 1980-2019. In the first step, we used the money market pressure index approach to determine the date of the banking crisis. In the second step, we used the Hodrick-Prescott filter to extract different trends from countries' GDPs to calculate four alternative measures of real output losses, three of which are based on the loss in GDP with respect to its trend and the fourth measure is the loss in the trend itself. We also graphically analyzed the number of banking crises in different groups of countries and output losses following crises. In this study, 122 banking crises were identified in four groups of countries. The results of graph analysis of the crises showed that the highest number of banking crises (14 crises) occurred in 2008. Also, about 22 Percentage of the total banking crises (28 crises) occurred in the period 2008-2012, in which the share of high-income countries was higher than other country groups. Then, four alternative measures of real output losses following the banking crisis, the statistics related to the maximum and minimum losses, and graphical analysis were presented.

Keywords

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Economics Research

Banking Crisis Dates and Output Losses Following Crises

References

References

Volume 21, Issue 82 - Serial Number 3
October 2021
Pages 129-161

Banking Crisis Dates and Output Losses Following Crises

References

References

Volume 21, Issue 82 - Serial Number 3October 2021Pages 129-161

Volume 21, Issue 82 - Serial Number 3
October 2021
Pages 129-161