Economic Models - Convex Optimization

220 Athanasios Athanasenas
run, credit causes money income. From my co-integration analysis, I found
that the adjustment coefficient is significant and its value (−0.0879), gives a
satisfactory percentage, regarding the money income convergence towards
a long-run equilibrium.
Moreover, we observe a causality effect from income changes to credit
changes, in the short run for the post-war US economy. The validity of
the credit view theorists seems rather evident, by taking into account the
contemporary co-integration and system stability approaches.
Further, in terms of reasonable research implications, following our
contemporary co-integration and system stability approaches, we may
stress the need for an in-depth investigation of the credit cycle and fluctuations
in commercial credit standards. 13
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13 See, for example, Lown and Morgan (2006), for parallel research on commercial credit
standards, following “traditional” VAR analysis.