Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/286141 
Title (translated): 
Credit channel effects on new residential property prices: Evidence from Medellín, Colombia
Year of Publication: 
2018
Citation: 
[Journal:] Revista de Métodos Cuantitativos para la Economía y la Empresa [ISSN:] 1886-516X [Volume:] 26 [Year:] 2018 [Pages:] 104-127
Publisher: 
Universidad Pablo de Olavide, Sevilla
Abstract (Translated): 
We analyze the credit channel effects on new residential property prices in Medellín, Colombia, using a simultaneous equations model. Our empirical results show that the main determinants of new residential properties prices are mortgage interest rates and the availability of government sponsored subsidies to homebuyers (GS). An increase of one percent in mortgage interest rates reduces the demand of new residential properties and increases their price by COP $46,865 per square meter. Greater availability of government of GS increases the demand for new residential properties. Using a structural VAR, we find that a positive shock to a proxy for the real interest rate (unit of real value, URV) of one standard deviation leads to a reduction of the price of new residential properties in Medellín.
Subjects: 
New housing
supply and demand model
URV
SVAR
SUR
3SLS Medellin
Colombia
JEL: 
D43
L16
L74
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-sa Logo
Document Type: 
Article

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