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paper establishes some innovative dynamic models, proposes a concept of net mortgage loan to net speculative gain ratios to … investigate the speculative behaviors and mortgage bubbles, and finally concludes some interesting results: The necessary …, and, the net mortgage loan to net speculative gain ratios subsequently exist, which approximately depict the potential …
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rates and house prices. Some Chinese banks, especially the Bank of China, have been exposed to the US mortgage … mortgage defaults than their western counterparts because house buyers are mainly urban and high income residents who are …
Persistent link: https://www.econbiz.de/10013157129
This paper examines whether urban leverage, defined by the bank loan-to-deposit ratio in a city, affects housing prices in China. Using a panel dataset of 236 cities and hedonic models, we find a depressing effect of urban leverage on housing price in first- and second-tier cities while leaving...
Persistent link: https://www.econbiz.de/10012872792
This paper investigates whether housing collateral is important to the business cycle in China. We develop two models, one without housing collateral as benchmark and one variant allowing for it. Indirect Inference procedure tests these two models' compatibility with the data. We find that the...
Persistent link: https://www.econbiz.de/10012230065
macroeconomic policies to address these concerns. This paper looks at proposals to shore up the mortgage underwriting and legal …
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Loss aversion is a core concept in prospect theory that refers to people's asymmetric attitudes with respect to gains and losses. More specifically, losses loom larger than gains. With the capability of loss aversion to explain economic phenomena, some of which are puzzling under expected...
Persistent link: https://www.econbiz.de/10011591060