Loading...
Please wait, while we are loading the content...
Similar Documents
LTV vs. DTI Constraints: When Did They Bind, and How Do They Interact?
| Content Provider | Semantic Scholar |
|---|---|
| Author | Ingholt, Marcus Mølbak |
| Copyright Year | 2018 |
| Abstract | I document that the elasticity of mortgage loan origination with respect to house prices is highly dependent on the change in personal incomes and vice versa, using U.S. county-level panel data. I rationalize this in a model with two occasionally binding borrowing constraints: a loan-to-value (LTV) constraint and a debt-service-to-income (DTI) constraint. A Bayesian estimation of the model infers when the LTV and DTI constraints have been binding during 1975-2017, and which shocks that caused them to bind. A macroprudential experiment shows that countercyclical LTV limits cannot dampen mortgage debt growth in expansions, but DTI limits can. |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://www.nationalbanken.dk/en/research/conferences_and_seminars/Documents/LTVvsLTIConstraints.pdf |
| Alternate Webpage(s) | https://economicdynamics.org/meetpapers/2018/paper_866.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |