... (0, σ2i) and where˙Dtdenotes the annual growth rate of the demand for bankloans,˙St the annual growth rate of the supply of b ank loans and ˙Qt the annual gro wth rate of the observed ... ifthere is an excess demand for bank loans (Sealey, 1979). However, since the quantity of loans and therefore the estimates of the unobservable loan demand and supply variables are defined in the ... Indeed, the mean of the realizations of eβi and eσiare v ery close to the true values of parameters, and the difference isinferior to 10−2for the βi. Hence, in the application we will use the...