-
Views
-
Cite
Cite
Filipa Sá, Pascal Towbin, Tomasz Wieladek, Capital Inflows, Financial Structure and Housing Booms, Journal of the European Economic Association, Volume 12, Issue 2, 1 April 2014, Pages 522–546, https://doi.org/10.1111/jeea.12047
- Share Icon Share
Abstract
We use a panel VAR to study the effect of shocks to capital inflows, which are identified using sign restrictions, on the housing market in OECD countries. To explore how effects of these shocks change with the structure of the mortgage market and the degree of mortgage securitization, we allow the VAR coefficients to vary with mortgage-market characteristics. Our results indicate that capital-inflow shocks have a significant and positive effect on real house prices, real credit available to the private sector, and real residential investment. The responses of these variables are stronger in countries with more developed mortgage markets and in countries where securitization is allowed.