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dc.contributor.authorOikarinen, Eliasen_US
dc.date.accessioned2011-03-25T09:40:25Z-
dc.date.available2011-03-25T09:40:25Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/44584-
dc.description.abstractHousing prices and household borrowing are expected to be tightly connected to each other. Better availability of credit eases liquidity constraints of households, which is likely to lead to higher demand for housing. On the other hand, housing prices may significantly influence household borrowing through various wealth effects. Employing time series econometrics this study shows that since the financial liberalization in the late 1980s there has been a significant two-way interaction between housing prices and housing loan stock in Finland. Before the financial deregulation the interaction was substantially weaker. Furthermore, housing appreciation has a notable positive impact on the amount of consumption loans withdrawn by households. It appears that there is no similar relationship between stock price movements and household borrowing. Understanding the two-way interaction between housing prices and credit is of importance, since the interdependence is likely to augment boom-bust cycles in the economy and increase the fragility of the financial sector.en_US
dc.language.isoengen_US
dc.publisherElinkeinoelämän Tutkimuslaitos Helsinkien_US
dc.relation.ispartofseriesETLA discussion paper 1145en_US
dc.subject.jelE41en_US
dc.subject.jelE51en_US
dc.subject.jelR21en_US
dc.subject.ddc330en_US
dc.subject.keywordlendingen_US
dc.subject.keywordborrowingen_US
dc.subject.keywordhousingen_US
dc.subject.keywordstocksen_US
dc.subject.keyworddynamicsen_US
dc.subject.stwUnternehmensentwicklungen_US
dc.subject.stwImmobilienpreisen_US
dc.subject.stwVermögenen_US
dc.subject.stwPrivater Haushalten_US
dc.subject.stwHaushaltsökonomiken_US
dc.subject.stwKrediten_US
dc.subject.stwVerbraucherkrediten_US
dc.subject.stwFinnlanden_US
dc.titleInteraction between housing prices and household borrowing in Finlanden_US
dc.typeWorking Paperen_US
dc.identifier.ppn574219706en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:ETLA Discussion Papers, Research Institute of the Finnish Economy (ETLA)

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