scholarly journals Credit Supply and the Price of Housing

2015 ◽  
Vol 105 (3) ◽  
pp. 958-992 ◽  
Author(s):  
Giovanni Favara ◽  
Jean Imbs
Keyword(s):  
Instrumental Variable ◽  
Housing Stock ◽  
House Prices ◽  
Housing Demand ◽  
Housing Supply ◽  
Credit Expansion ◽  
Credit Supply ◽  
Mortgage Credit ◽  
Supply Shock ◽  
Rule Out

An exogenous expansion in mortgage credit has significant effects on house prices. This finding is established using US branching deregulations between 1994 and 2005 as instruments for credit. Credit increases for deregulated banks, but not in placebo samples. Such differential responses rule out demand-based explanations, and identify an exogenous credit supply shock. Because of geographic diver-sification, treated banks expand credit: housing demand increases, house prices rise, but to a lesser extent in areas with elastic housing supply, where the housing stock increases instead. In an instrumental variable sense, house prices are well explained by the credit expansion induced by deregulation. (JEL G21, G28, R21, R31)

scholarly journals MODELLING HOUSING SUPPLY AND MONETARY POLICY WITHIN THE CONTEXT OF GLOBAL ECONOMIC TURBULENCE

2013 ◽  
Vol 17 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Junxiao Liu ◽  
Kerry London
Keyword(s):  
Monetary Policy ◽  
Housing Stock ◽  
Housing Demand ◽  
Housing Supply ◽  
Policy Makers ◽  
Vector Error Correction ◽  
Global Context ◽  
Dummy Variable ◽  
Vector Error ◽  
Economic Climate

Housing supply is an essential component of the property sector. Compared with an increasingly strong housing demand, the growth rates of total housing stock in Australia have exhibited a downward trend since the end of the 1990s. Over the same period, the significant adjustments in the Australian monetary policy were being implemented under a turbulent global economic climate. This research aims to identify the relationship between housing supply and monetary policy within the context of global economic turbulence by a vector error correction model with a dummy variable. The empirical evidence indicates that the monetary policy changes and global economic turmoil can significantly affect the supply side of the housing sector in Australia. The models developed in this study assist policy makers in estimating the political impacts in the global context.

scholarly journals Housing supply elasticity and growth: evidence from Italian cities

2020 ◽  
Author(s):  
A Accetturo* ◽  
A R Lamorgese** ◽  
S Mocetti ◽  
D Pellegrino**
Keyword(s):  
Housing Stock ◽  
House Prices ◽  
Labor Demand ◽  
Housing Supply ◽  
Physical Constraints ◽  
Supply Elasticity ◽  
Housing Supply Elasticity ◽  
Using Data ◽  
The Impact ◽  
The City

Abstract This paper examines the impact of housing supply elasticity on urban development. Using data for a sample of roughly one hundred Italian main cities observed over 40 years, we first estimate housing supply elasticities at the city level, measured as the correlation between the changes in the housing stock and in the house prices. Second, we show that differences in the elasticity of housing supply may determine the extent to which a demand shock translates into more intense employment growth or more expensive houses. To address endogeneity of housing supply elasticity, we exploit a synthetic measure of physical constraints to residential development as instrumental variable. We find that an exogenous increase in labor demand determines a rise of employment and house prices; however, in cities with a less elastic housing supply, the impact on economic growth is significantly lessened while the effects on house prices are larger.

scholarly journals EARLY 20TH-CENTURY WOODEN TENEMENT BUILDINGS IN ESTONIA: BUILDING BLOCKS FOR NEIGHBORHOOD LONGEVITY

2011 ◽  
Vol 35 (2) ◽  
pp. 110-116 ◽  
Author(s):  
Daniel B. Hess
Keyword(s):  
World War I ◽  
Built Environment ◽  
20Th Century ◽  
Transition Period ◽  
Housing Stock ◽  
Building Blocks ◽  
Urban Housing ◽  
Housing Demand ◽  
Early 20Th Century ◽  
Art Nouveau

During the early 20th century, the urban housing supply in Estonia expanded quickly to meet growing housing demand, resulting in tenement districts conceived for maximum profitability of rental units. In Karlova, a district near the city center of Tartu, about five hundred wooden houses, built between 1911 and the early 1920s and displaying simple Art Nouveau details, are set amid a charming district with a distinct milieu. This article focuses on three time periods during which the development of its built environment gave Karlova its distinctiveness: (1) the years leading up to World War I; (2) the interwar period; and (3) the two decades since 1991, or the post-transition period. Although the district was neglected during the Soviet era, it remains remarkably intact and has even experienced, since the 1990s, gentrification. The high-quality housing stock and charming built environment has much to offer to its diverse population of students, professionals, families, and longtime residents. Santrauka Dvidešimtojo amžiaus pradžioje gyvenamųjų namų pasiūla Estijoje greitai augo atitikdama į augančius gyvenamojo ploto poreikius. Minėtos situacijos rezultatas - daugiabučių namų kvartalai sukurti taip, kad iš nuomojamų patalpų būtų gaunamas maksimalus pelnas. Karlova – kvartalas netoli Tartu centro. Jį sudaro apie penki šimtai medinių namų, pastatytų tarp 1911 ir 1920 metų. Pastatams būdingos paprastos Art Nouveauarchitektūrinės detalės, jie pastatyti išskirtinėje patrauklioje aplinkoje. Pateikiamame straipsnyje nagrinėjami trys laikotarpiai, per kuriuos užstatymo kaita aptariamoje teritorijoje sukūrė išskirtinį jos tapatumą: 1) laikotarpis iki Pirmojo pasaulinio karo; 2) tarpukaris; 3) du dešimtmečiai po 1991 m. Nežiūrint to, kad sovietiniais metais teritorija buvo nesaugoma ir ja nesirūpinama, Karlova išsaugojo nepažeistą architektūrinį urbanistinį vientisumą, o po 1990 m. teritorijoje prasidėjo gentrifikacijos procesai. Aukštos kokybės gyvenamasis užstatymas ir žavi urbanistinė aplinka gali daug pasiūlyti įvairioms gyventojų grupėms: studentams, profesionalams, šeimoms ir vyresnio amžiaus žmonėms.

Assessing Low-Cost Housing Demand in Melaka: PLS-SEM Approach

2013 ◽  
Vol 838-841 ◽  
pp. 3156-3162 ◽  
Author(s):  
Noor Yasmin Zainun ◽  
Nadzirah Roslan ◽  
Aftab Hameed Memon
Keyword(s):  
Low Income ◽  
Goodness Of Fit ◽  
Housing Stock ◽  
Low Cost ◽  
Great Influence ◽  
Economic Factor ◽  
Housing Demand ◽  
Factors Affecting ◽  
Low Cost Housing ◽  
The Government

Housing is one of the basic needs of human. Population in Malaysia is increasing and expected to reach up to 35 million in year 2020. This phenomenon creates high demand for housing. To tackle the squatter problems, the government introduces low-cost housing. Low cost house is known as the government house, where the price is cheaper but still comfortable. Although there are many of low-cost housing projects have been completed to cope with the need of the citizen especially for low-income group. However, census report reveled that these is huge demand of low-cost housing. This demand might be because of various factors which are very essential to identify in order to meet the required demand of low cost houses. Hence, this study is carried out to assesse the demand of low cost housing in Melaka, determine the significant factors affecting demand of low-cost housing, and establish PLS-SEM model for assessing factors affecting low-cost housing demand. In this study, data are collected by distributing questionnaire in Melaka state. The collected data from survey was analyzed using statistical software SPSS and presented in graphs and chart. Further, factors affecting low cost housing demand in Melaka were modeled with the SmartPLS v2.0. The model shows the relationship between low cost housing demand and its indicators. The finding of the study showed that most significant indicators affecting the demand of low-cost housing in Melaka are the economic factors which include housing stock, inflation rate and Gross Domestic Products (GDP). The Goodness of Fit showed that the model has substantial explaining power for the assessing factors affecting low cost housing demand in Melaka which the values is 0.481. This means that the economic factor has a great influence on the low-cost housing demand in Melaka.

Credit Stimulus, Executive Ownership, and Firm Leverage

2021 ◽  
Author(s):  
Rajdeep Chakraborti ◽  
Sandeep Dahiya ◽  
Lei Ge ◽  
Pedro Gete
Keyword(s):  
Banking Sector ◽  
Chinese Government ◽  
Bank Capital ◽  
Credit Expansion ◽  
Complete Control ◽  
Credit Supply ◽  
Credit Demand ◽  
Firm Leverage

We show that executive ownership is a significant driver of the demand for credit following credit expansion policies. Our focus on credit demand is in contrast to most studies that have focused on credit supply factors such as bank capital. Our identification exploits the large and unexpected Chinese credit expansion in 2008. This setting offers a unique advantage as in 2008 the Chinese government had almost complete control over the banking sector and it directed the banks to increase credit supply. Thus, in this setting, demand, rather than supply, largely drives the observed changes in firms’ borrowing. We provide extensive robustness tests to validate our results. This paper was accepted by Kay Giesecke, finance.

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