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Housing market dynamics and macroprudential policy

Bruneau, Gabriel; Christensen, Ian; Meh, Césaire Assah - 2016

We perform an analysis to determine how well the introduction of a countercyclical loanto- value (LTV) ratio can reduce household indebtedness and housing price fluctuations compared with a monetary policy rule augmented with house price inflation. To this end, we construct a New Keynesian model...

Persistent link: https://www.econbiz.de/10011517031

Banks, credit market frictions, and business cycles

Dib, Ali - 2010

The author proposes a micro-founded framework that incorporates an active banking sector into a dynamic stochastic general-equilibrium model with a financial accelerator. He evaluates the role of the banking sector in the transmission and propagation of the real effects of aggregate shocks, and...

Persistent link: https://www.econbiz.de/10008695487

Unregulated lending, mortgage regulations and monetary policy

Emenogu, Ugochi; Peterson, Brian - 2022 - Last updated: June 27, 2022

Macroprudential policies are often aimed at the traditional banking sector while nondepository financial institutions or shadow banks have limited or no prudential regulations. This paper studies the macroeconomic impact of household-side macroprudential tightening in the presence of unregulated...

Persistent link: https://www.econbiz.de/10013264902

Credit conditions and consumption, house prices and debt : what makes Canada different?

Muellbauer, John; St-Amant, Pierre; Williams, David - 2015

-correction equations for Canadian aggregate consumption, house prices and mortgage debt. We find strong evidence that, after controlling … increase the mortgage down-payment requirement and reduce consumption, although there is evidence for some attenuation of this … mostly explained by movements in incomes, housing supply, mortgage interest rates and credit conditions, suggesting that the …

Persistent link: https://www.econbiz.de/10011408596

The propagation of regional shocks in housing markets : evidence from oil price shocks in Canada

Kilian, Lutz; Zhou, Xiaoqing - 2018

Shocks to the demand for housing that originate in one region may seem important only for that regional housing market. We provide evidence that such shocks can also affect housing markets in other regions. Our analysis focuses on the response of Canadian housing markets to oil price shocks. Oil...

Persistent link: https://www.econbiz.de/10011933475

Business cycle effects of credit shocks in a DSGE model with firm defaults

Pesaran, M. Hashem; Xu, TengTeng - 2013

This paper proposes a theoretical framework to analyze the relationship between credit shocks, firm defaults and volatility, and to study the impact of credit shocks on business cycle dynamics. Firms are identical ex ante but differ ex post due to different realizations of firm-specific...

Persistent link: https://www.econbiz.de/10009751689

A general equilibrium model with banks and default on loans

Takamura, Tamon - 2013

During the recent financial crisis in the U.S., banks reduced new business lending amidst concerns about borrowers' ability to repay. At the same time, firms facing higher borrowing costs alongside a worsening economic outlook reduced investment. To explain these aggregate business cycle...

Persistent link: https://www.econbiz.de/10009690835

The role of credit in international business cycles

Xu, TengTeng - 2012

This paper examines the role of bank credit in modeling and forecasting business cycle fluctuations, and investigates the international transmission of US credit shocks, using a global vector autoregressive (GVAR) framework and associated country-specific error correction models. The paper...

Persistent link: https://www.econbiz.de/10009668401

China's emergence in the world economy and business cycles in Latin America

Cesa-Bianchi, Ambrogio; Pesaran, M. Hashem; Rebucci, … - 2012

The international business cycle is very important for Latin America's economic performance as the recent global crisis vividly illustrated. This paper investigates how changes in trade linkages between China, Latin America, and the rest of the world have altered the transmission mechanism of...

Persistent link: https://www.econbiz.de/10009627525

Technology shocks, labour mobility and aggregate fluctuations

Hauser, Daniela - 2014

We provide evidence regarding the dynamic behaviour of net labour flows across U.S. states in response to a positive technology shock. Technology shocks are identified as disturbances that increase relative state productivity in the long run for 226 state pairs, encompassing 80 per cent of...

Persistent link: https://www.econbiz.de/10010235884