Take It to the limit? The effects of household leverage caps
Mostra el registre complet Registre parcial de l'ítem
- dc.contributor.author Van Bekkum, Sjoerd
- dc.contributor.author Gabarro, Marc
- dc.contributor.author Irani, Rustom M.
- dc.contributor.author Peydró, José-Luis
- dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
- dc.date.accessioned 2020-05-25T09:26:59Z
- dc.date.available 2020-05-25T09:26:59Z
- dc.date.issued 2019-11-06
- dc.date.modified 2020-05-25T09:26:11Z
- dc.description.abstract We analyze the effects of borrower-based macroprudential policy at the household-level. For identification, we exploit administrative Dutch tax-return and property ownership data linked to the universe of housing transactions, and the introduction of a mortgage loan-to-value limit. The regulation reduces mortgage leverage, with bunching in its limit. Ex-ante more-affected households substantially reduce overall leverage and debt servicing costs but consume greater liquidity to satisfy the regulation. Improvements in household solvency result in less financial distress and, given negative idiosyncratic shocks, better liquidity management. However, fewer households transition from renting into ownership. All of these effects are stronger for liquidity-constrained households.
- dc.format.mimetype application/pdf*
- dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1682
- dc.identifier.citation
- dc.identifier.uri http://hdl.handle.net/10230/44739
- dc.language.iso eng
- dc.relation.ispartofseries Economics and Business Working Papers Series; 1682
- dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
- dc.rights.accessRights info:eu-repo/semantics/openAccess
- dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
- dc.subject.keyword macroprudential policy; financial regulation; residential mortgages; household finance; household leverage; loan-to-value ratio
- dc.subject.keyword Macroeconomics and International Economics
- dc.title Take It to the limit? The effects of household leverage caps
- dc.title.alternative
- dc.type info:eu-repo/semantics/workingPaper