Showing 1 - 10 of 9,095
This paper studies the relationship between macroeconomic imbalances and bankruptcies in the Nordic countries. Finland, Sweden, Norway and Denmark liberalised their financial markets during the 1980s and experienced the consecutive emergence of a financial cycle, followed by severe banking...
Persistent link: https://www.econbiz.de/10010321312
Much of the literature on the effect of housing wealth on consumption has been embedded in a simple life-cycle model in … which housing price changes work as a wealth effect. In such models, windfall gains in housing always lead to positive … changes in consumption. However, this might constitute a fallacy of composition. Such models ignore that changes in housing …
Persistent link: https://www.econbiz.de/10010335898
Much of the literature on the effect of housing wealth on consumption has been embedded in a simple life-cycle model in … which housing price changes work as a "wealth effect". In such models, windfall gains in housing always lead to positive … changes in consumption. However, this might be a fallacy of composition. Such models ignore that changes in housing wealth …
Persistent link: https://www.econbiz.de/10010460538
This paper examines the welfare cost of rare housing disasters characterized by large drops in house prices. I … construct an overlapping generations general equilibrium model with recursive preferences and housing disaster shocks. The … likelihood and magnitude of housing disasters are inferred from historic housing market experiences in the OECD. The model shows …
Persistent link: https://www.econbiz.de/10011396703
accelerator of house prices and finds that over the period 2000-2008 the value of all housing transactions exceeded the aggregate … net growth of mortgages by 50%, indicating substantial equity financing. In one year, 2008, the value of aggregate housing …
Persistent link: https://www.econbiz.de/10011968388
the United States, housing collateral effects on consumption are absent. Given credit conditions, rising house prices … mostly explained by movements in incomes, housing supply, mortgage interest rates and credit conditions, suggesting that the …
Persistent link: https://www.econbiz.de/10011481488
I study debt relief as a stimulus policy using a dynamic stochastic general equilibrium model that captures the rich heterogeneity in households' balance sheets. In this environment, a large-scale mortgage principal reduction can amplify a recovery, support house prices and lower foreclosures....
Persistent link: https://www.econbiz.de/10014544455
moderate house price differences in the UK. We disaggregate both the household sector and the housing stock in a two …-region DSGE model with out of sync subnational housing markets and compare four policy types: standard monetary policy, leaning …
Persistent link: https://www.econbiz.de/10014501365
union. By employing a calibrated two-country New Keynesian DSGE model with collateral constraints tied to housing values, we … be an important driver of an asymmetric development in housing markets and real economic activity of member states. Our …
Persistent link: https://www.econbiz.de/10010310658
I examine the impact of non-regulated lenders in the mortgage market using a dynamic stochastic general equilibrium (DSGE) model. My model features two types of financial intermediaries that differ in three ways: (i) only regulated intermediaries face a capital requirement, (ii) non-regulated...
Persistent link: https://www.econbiz.de/10012014444