search query: @author Liu, C. / total: 5
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| Author: | Almeida, H. Campello, M. Liu, C. |
| Title: | The financial accelerator: Evidence from international housing markets |
| Journal: | Review of finance
2006 : VOL. 10:3, p. 321-352 |
| Index terms: | international markets housing finance |
| Language: | eng |
| Abstract: | In this paper, new evidence is presented on the mechanism through which financial (hereafter as: fin-al.) constraints amplify fluctuations in asset prices and credit demand, using contractual features of housing (here as: h-g.) finance. Among agents whose h-g. demand is constrained by the availability of collateral etc... have more procyclical debt capacity. This procyclicality underlies the fin-al. accelerator (as: accl-or.) mechanism. This study uses international (as: int.) variation in loan-to-value (or LTV) ratios over three decades to test whether i. housing prices and ii. demand for new mortgage borrowings are more sensitive to income shocks in countries where households can achieve higher LTV ratios. The results are consistent with the dynamics of a collateral-based fin-al. accl-or. in int. h-g. markets. |
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