Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/233634 
Year of Publication: 
2021
Series/Report no.: 
BoF Economics Review No. 1/2021
Publisher: 
Bank of Finland, Helsinki
Abstract: 
We analyze the economic effects of a debt-to-income constraint for the Finnish economy. Our benchmark is a DSGE model which is designed to capture the most prominent features of the Finnish economy and is calibrated using Finnish macroeconomic data. The baseline model incorporates a loan-to-value type of constraint for new mortgage loans. We study the effects of replacing this with a neutral DTI constraint, neutral meaning that the level of the constraint is set so that it would not alter the mortgage loans-to-GDP ratio in the long run. We find that the replacement would have only small long run effects on the economy, and it would poten-tially reduce the volatility of several variables associated with the housing markets.
Subjects: 
Suomen Pankki
Aino 3.0
DSGE
mallit
Suomi
Persistent Identifier of the first edition: 
Document Type: 
Research Report

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