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Two Extensive Margins of Credit and Loan-to-Value Policies

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dc.contributor.authorGete, Pedro
dc.contributor.authorReher, Michael
dc.contributor.funderReal Estate Research Institute
dc.contributor.funderMinisterio de Economía y Competitividad
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2024-11-07T12:20:01Z
dc.date.available2024-11-07T12:20:01Z
dc.date.issued2016-09-15
dc.description.abstractWe analyze a model of mortgage markets, housing tenure choice, heterogeneous agents, and default with closed form solutions. We uncover new insights which may inspire empirical work, and we ground already established insights in a series of tractable expressions. Then we study optimal loan-to-value (LTV) regulation and show that the choice of an LTV cap should balance the opposing forces of access to homeownership and the negative externalities associated with default. Homeownership affordability concerns induce procyclical elements into optimal regulation which attenuate the countercyclical regulation justified by the negative default externalities.
dc.description.peerreviewedyes
dc.description.statusPublished
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dc.identifier.citationGETE, P. and REHER, M. (2016), Two Extensive Margins of Credit and Loan-to-Value Policies. Journal of Money, Credit and Banking, 48: 1397-1438. https://doi.org/10.1111/jmcb.12337
dc.identifier.doihttps://doi.org/10.1111/jmcb.12337
dc.identifier.issn1538-4616
dc.identifier.officialurlhttps://onlinelibrary.wiley.com/journal/15384616
dc.identifier.urihttps://hdl.handle.net/20.500.14417/3311
dc.issue.number7
dc.journal.titleJournal of Money, Credit and Banking (JMCB)
dc.language.isoen
dc.page.final1438
dc.page.initial1397
dc.page.total41
dc.publisherWiley
dc.relation.departmentFinance
dc.relation.entityIE University
dc.relation.schoolIE Business School
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.accessRightsinfo:eu-repo/semantics/openAccess
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subject.keywordExtensive Margin
dc.subject.keywordLoan-to-Value
dc.subject.keywordMortgage Markets
dc.subject.keywordHomeownership
dc.subject.keywordCollateral
dc.titleTwo Extensive Margins of Credit and Loan-to-Value Policies
dc.typeinfo:eu-repo/semantics/article
dc.version.typeinfo:eu-repo/semantics/acceptedVersion
dc.volume.number48
dspace.entity.typePublication
relation.isAuthorOfPublication627e06b8-d61f-4611-96fe-15cf32670e9f
relation.isAuthorOfPublication.latestForDiscovery627e06b8-d61f-4611-96fe-15cf32670e9f
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