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Thresholds for Prime Rate Changes and Tests for Symmetry

Version
v0
Resource Type
Dataset : survey data
Creator
  • Dueker, Michael J. (Federal Reserve Bank of St. Louis)
Other Title
  • Archival Version (Subtitle)
Publication Date
2000-12-06
Language
English
Free Keywords
consumer loans; credit card debt; interest rates; loans
Description
  • Abstract

    The popular assertion -- that banks raise loan rates more readily than they lower them in opposite circumstances -- returns to the forefront during every period of declining market interest rates. Perhaps this assertion captures attention because since the 1980s, the ubiquity of credit card balances means that consumer loan rates affect more people than ever. In this article, the author presents specific tests for asymmetric behavior in bank loan rates. The results suggest that the bank prime lending rate, in particular, is slower to decrease than increase. The findings also suggest that one has to put the asymmetry in perspective. The prime rate does not remain far above where it would be in the absence of asymmetry. In addition, the asymmetry probably is the market's response to the rise in default and late payment probabilities that occurs during cyclical downturns in the economy.
  • Table of Contents

    Datasets:

    • DS1: Dataset
Geographic Coverage
  • United States
Collection Mode
  • (1) The file submitted, 0009md.zip, contains the program and data files. (2) These data are part of ICPSR's Publication-Related Archive and are distributed exactly as they arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigators if further information is desired.

Availability
Delivery
This version of the study is no longer available on the web. If you need to acquire this version of the data, you have to contact ICPSR User Support (help@icpsr.umich.edu).
Alternative Identifiers
  • 1231 (Type: ICPSR Study Number)
Relations
  • Is previous version of
    DOI: 10.3886/ICPSR01231.v1
Publications
  • Dueker, Michael J.. Are prime rate changes asymmetric?. Federal Reserve Bank of St. Louis Review.82, (5), 33-40.2000.

Update Metadata: 2015-08-05 | Issue Number: 6 | Registration Date: 2015-06-15

Dueker, Michael J. (2000): Thresholds for Prime Rate Changes and Tests for Symmetry. Archival Version. Version: v0. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/ICPSR01231