DEMAND DETERMINANTS OF PERSONAL CREDIT – FREE RESOURCES, 2004-2011, IN BRAZILIAN SELECT STATES

Abstract

This paper evaluates macroeconomic factors that contributed for personal credit (free resources) demand´s growth at Brazil in 2004-2011. Applying SUR and panel estimations for six states, calculates show that beyond interest rates, the conditions in labor market remained important. Unemployment and, specially, average real wage are key determinants in loan´s demand.  Then, the fast and intensive growth in personal credit was explained by encouraging macroeconomic conditions between 2004 and 2011, and low level of credit in GDP.