Juliana Dutra Araujo, Manasa Patnam, Ms. Adina Popescu, Mr. Fabian Valencia, and Weijia Yao
This paper builds a novel database on the effects of macroprudential policy drawing from 58 empirical studies, comprising over 6,000 results on a wide range of instruments and outcome variables. It encompasses information on statistical significance, standardized magnitudes, and other characteristics of the estimates. Using meta-analysis techniques, the paper estimates average effects to find i) statistically significant effects on credit, but with considerable heterogeneity across instruments; ii) weaker and more imprecise effects on house prices; iii) quantitatively stronger effects in emerging markets and among studies using micro-level data; and iii) statistically significant evidence of leakages and spillovers. Other findings include relatively stronger impacts for tightening than loosening actions and negative effects on economic activity in the near term.
Juliana Dutra Araujo, Manasa Patnam, Ms. Adina Popescu, Mr. Fabian Valencia, Weijia Yao, and Mr. Vikram Haksar
)-(5) show the results after adding the selectionbiascorrectionterm as explained in the previous subsection. Even though the selection term is statistically significant in Column 5, the overall pattern of results are only slightly affected by it.
Third, two dummy variables were added to control for results coming from unpublished papers (Cooumn 4) and from specifications which are not the most complete ones within a paper (Coumns 4 and 5), which allows controlling for quality of papers and results. The rationale behind the publication dummy is that the refereeing