. While stricter LTV limits are often considered as a measure to tackle the rise in household indebtedness, I find that policy …

This paper examines macroeconomic dynamics of household debt and housing prices. Drawing on Minsky's insights into … financial instability and cycles, our framework combines household debt dynamics with behavioral asset price dynamics in a … Keynesian macro model. We show that endogenous boom-bust cycles can emerge through the interaction between household debt and …

House prices have increased significantly in Canada over the past decade, driving household debt and residential … construction activity to historical highs. Although macro-prudential tightening has slowed the pace of household borrowing in the … government backing of the mortgage market. Nonetheless, the dominance of the crown corporation CMHC in the mortgage insurance …

Mortgage refinancing activity associated with extraction of home equity contains a strongly counter-cyclical component … consistent with household demand for liquidity. We estimate a structural model of liquidity management featuring counter … empirically evaluate its predictions for the households' choices of leverage, liquid assets, and mortgage refinancing using micro …

household net worth coming from elevated household debt and the collapse in house prices play an underappreciated role. Using … highlight the increasing body of macroeconomic evidence on the link between household debt and business cycles. Our main … conclusion is that housing and household debt should play a larger role in models exploring the importance of household …

This paper studies how mortgage borrowers and house prices react to a tightening of mortgage limits following a policy … leverage (LTV) of the mortgage. Using a difference-in-difference methodology, I find that groups of (poorer) borrowers, who …-to-value threshold, responded primarily by reducing the LTV of the mortgage. Borrowers who purchase cheaper houses could be buying …

This study investigates the interrelation between the household leverage cycle, collateral constraints, and monetary … fall in economic activity during periods of household deleveraging. In contrast, monetary policy shocks only have … insignificant effects during a household leveraging state. These results are robust to alternative definitions of leveraging and …

. We find that the idiosyncratic mortgage risk shock plays an importantrole in explaining the fluctuations of house prices … of household loans. Byplacing an occasionally binding constraint on the loan-to-value ratio, we find that the …

In a number of countries a substantial proportion of mortgage loans is denominated in foreign currency. In this paper …