Table 3 Long-run relationship between the policy rate and the bank lending rate
From: Interest rate liberalization and pass-through of monetary policy rate to bank lending rates in China
yt = γ0 + λ0D + γ1xt + λ1D × xt + zt | |||||
|---|---|---|---|---|---|
Variable | Coefficient | S. E. | t-statistics | Prob. | |
Constant | γ 0 | 3.955 | 0.0959 | 41.236 | 0.000 |
D | λ 0 | −1.175 | 0.196 | 5.983 | 0.000 |
x t − 1 | γ 1 | 0.761 | 0.0172 | 44.177 | 0.000 |
D × xt − 1 | λ 1 | 0.362 | 0.0657 | 5.514 | 0.000 |