Borrowing constraints and housing price expectations in the euro area

C-Tier
Journal: Economic Modeling
Year: 2018
Volume: 72
Issue: C
Pages: 410-421

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper analyzes the importance of financial constraints on the home ownership decision of European households and their differential effect in periods of positive expectations of housing prices. We document that financial constraints are key drivers of the household homeownership decision being wealth constraints more relevant than income constraints. The wealth constraint is less binding under a scenario in which housing prices exhibit an upward trend.

Technical Details

RePEc Handle
repec:eee:ecmode:v:72:y:2018:i:c:p:410-421
Journal Field
General
Author Count
2
Added to Database
2026-01-24