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On the importance of borrowing constraints for house price dynamics

Eerola, Essi; Määttänen, Niku - Suomen Pankki - 2008

We study how a household borrowing constraint the the form of a down payment requirement affects house price dynamics … dynamics substantially. The importance of the constraint depends very much on whether house price changes are driven by … interest rate or aggregate income shocks. Moreover, because of the borrowing constraint, house price dynamics display …

Persistent link: https://www.econbiz.de/10005648901

Housing collateral and the monetary transmission mechanism

Walentin, Karl; Sellin, Peter - 2010

In this paper our main aim is to quantify the role that housing collateral plays for the monetary transmission mechanism. Furthermore, we want to explore the implications of the increase in household indebtedness, and specifically the loan-to-value ratio, in the last two decades. We set up a two...

Persistent link: https://www.econbiz.de/10010320736

Mortgage borrowing limits and house prices: Evidence from a policy change in Ireland

Higgins, Brian E. - 2024

This paper studies how mortgage borrowers and house prices react to a tightening of mortgage limits following a policy change in Ireland in 2015. The policy introduced limits to the loan-to-income and loan-to-value ratios of new mortgages issued. In response to a tightening borrowing constraint,...

Persistent link: https://www.econbiz.de/10014543656

Debt dynamics and monetary policy: A note

Laséen, Stefan; Strid, Ingvar - 2013

incomplete account of short term debt dynamics. Further, the overall analysis of the effects of monetary policy on debt rests on … dynamics enables further understanding of how different assumptions affect the assessment of the effects of monetary policy on …

Persistent link: https://www.econbiz.de/10010427086

Business cycle implications of mortgage spreads

Walentin, Karl - 2014

How do aggregate quantities at the business cycle frequency respond to shocks to the spread between residential mortgage rates and government bonds? Using a structural VAR approach, we .nd that mortgage spread shocks impact the real economy by both economically and statistically signi.cant...

Persistent link: https://www.econbiz.de/10010427087

Matching in the housing market with risk aversion and savings

Eerola, Essi; Määttänen, Niku - 2013

Abstract:We develop a model of the housing market that features both financial and matching frictions. In the model, risk-averse households may save or borrow in order to smooth consumption over time and finance owner housing. Each household either rents or owns its house. Some renter households...

Persistent link: https://www.econbiz.de/10012037556

The economic effects of a central bank reacting to house price inflation

Baldi, Guido - In: Journal of Housing Economics 26 (2014), pp. 119-125

What are the economic effects of a central bank that takes the evolution of house prices into account? In an attempt to answer this question, we use a New Keynesian dynamic stochastic general equilibrium model with a housing sector to explore the economic impacts of a central bank reacting to...

Persistent link: https://www.econbiz.de/10012143488

An analysis of the primary and secondary housing market in Poland: evidence from the 17 largest cities

Leszczynski, Robert; Olszewski, Krzysztof - In: Baltic Journal of Economics 17 (2017) 2, pp. 136-151

We analyse the determinants of prices of flats that are bought on the primary (new construction) and secondary markets (existing stock) in the 17 largest cities in Poland during the 2002–2015 period. We find that prices are driven by economic fundamentals, such as income growth and drop in the...

Persistent link: https://www.econbiz.de/10011868519

Monetary Policy Shocks and the Role of House Prices Across European Countries

Giuliodori, Massimo - de Nederlandsche Bank - 2004

This paper provides a discussion of the `housing market' channels of the monetarytransmission mechanism (MTM) and offers some evidence on institutional differences in the European housing and mortgage markets. Using a number of VAR models, estimated individually for nine European countries over...

Persistent link: https://www.econbiz.de/10005030201

Wealth effects in emerging economies

Ciarlone, Alessio - Banca d'Italia - 2012

In this paper I estimate the impact of changes in real and financial wealth ï¿½ proxied by house and stock market prices ï¿½ on private consumption for a panel of sixteen emerging economies in Asia and Central and Eastern Europe. Using recent econometric techniques for heterogeneous...

Persistent link: https://www.econbiz.de/10009645796