Take it to the limit? : the effects of household leverage caps
| Autor: | Van Bekkum, Sjoerd, Gabarró, Marc, Irani, Rustom, Peydró, José-Luis |
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| Přispěvatelé: | Universitat Pompeu Fabra. Departament d'Economia i Empresa |
| Rok vydání: | 2019 |
| Předmět: |
G28
Macroprudential policy Residential mortgages macroprudential policy financial regulation residential mortgages household finance household leverage loan-to-value ratio Household leverage Loan-to-Value ratio solvency vs. liquidity tradeoff loan-to-valud ratio Household finance ddc:330 Solvency vs. liquidity trade-off Loan-to-value ratio G21 Macroeconomics and International Economics E58 Financial regulation G51 E21 |
| Zdroj: | Repositorio Digital de la UPF Universitat Pompeu Fabra |
| Popis: | We examine the effects of borrower-based macroprudential policy for household leverage, liquidity, and nancial distress. For identi cation, we exploit the introduction of a mortgage loan-to-value limit in the Netherlands, in conjunction with population tax-return and property ownership data linked to the universe of housing transactions. First-time homebuyers most affected by the policy shock substantially reduce household leverage and debt servicing costs by taking on less mortgage debt. Rather than buying more affordable homes or taking non-regulated loans, households consume greater liquidity in the year of home purchase to plug funding gaps. Improvements in household solvency are accompanied by fewer instances of financial distress despite the temporary loss of liquidity; however, along the extensive margin, fewer households transition from renting into ownership. These effects are stronger among cash-constrained households. |
| Databáze: | OpenAIRE |
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