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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/10010227164
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 find that mortgage spread shocks impact the real economy by both economically and statistically significant...
Persistent link: https://www.econbiz.de/10010202977
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/10011890967
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/10014490418
Models in the infinite horizon macro-housing literature often assume that borrowers are constrained exclusively by the loan-to-value (LTV) ratio. Motivated by the Swedish micro-data, I explore an alternative arrangement where borrowers are constrained by the feasibility of repayment, but choose...
Persistent link: https://www.econbiz.de/10011763051
Using a dedicated set of questions in the 2014 Luxembourg Household Finance and Consumption Survey (LU-HFCS), we show that a substantial share of households contributes their own labour to the acquisition of their main residence. These contributions help households faced with credit constraints,...
Persistent link: https://www.econbiz.de/10012299081
We study the effect of borrowing constraints in an assignment model of the housing market. When constraints apply symmetrically to all households, these lead to lower prices but unchanged housing consumption. When households can invest their own wealth and may differ in tastes, borrowing...
Persistent link: https://www.econbiz.de/10013540636
This paper studies the macroeconomic effects of implicit government guarantees of the obligations of government-sponsored enterprises. We construct a model with competitive housing and mortgage markets in which the government provides banks with insurance against aggregate shocks to mortgage...
Persistent link: https://www.econbiz.de/10014048555
Reverse mortgages allow elderly homeowners to tap into their housing wealth without having to sell or move out of their homes. However, very few eligible homeowners have used reverse mortgages to achieve consumption smoothing until recently when the reverse mortgage market in the United States...
Persistent link: https://www.econbiz.de/10014202553
Households who wish to extract home equity through refinancing their mortgage face a hidden transaction cost. The real value of the fixed nominal mortgage payment declines over time with inflation. The change in the real value of the mortgage payments from taking on a new mortgage is positive...
Persistent link: https://www.econbiz.de/10014216526