An Analysis of the Indirect Effects of Interest Rates on Housing Prices through Loans - Focused on the Mediating Effects of Mortgage and Household Loans -

2021 ◽  
Vol 39 (3) ◽  
pp. 211-227
Author(s):  
Jin Young Kim ◽  
Hee Soon Jang
Keyword(s):  
Interest Rates ◽  
Indirect Effects ◽  
Housing Prices ◽  
Mediating Effects

scholarly journals Influence and Factors of Interest rates on Housing Prices

2018 ◽  
Vol 2 ◽  
pp. 5-39
Author(s):  
Namhyun Kim ◽  
Han Ik Jang
Keyword(s):  
Interest Rates ◽  
Housing Prices

scholarly journals Liquidity, interest rates and house prices in the euro area: a DSGE analysis

2016 ◽  
Vol 9 (1) ◽  
pp. 4-25 ◽  
Author(s):  
Margarita Rubio ◽  
José A. Carrasco-Gallego
Keyword(s):  
Interest Rates ◽  
Monetary Union ◽  
Euro Area ◽  
House Prices ◽  
Housing Prices ◽  
House Price ◽  
Dsge Model ◽  
Content Type ◽  
The Core ◽  
Dynamic Stochastic

Purpose This study aims to build a two-country monetary union dynamic stochastic general equilibrium (DSGE) model with housing to assess how different shocks contributed to the increase in housing prices and credit in the European Economic and Monetary Union. One of the countries is calibrated to represent the core group in the euro area, while the other one corresponds to the periphery. Design/methodology/approach In this paper, the authors explore how a liquidity shock (or a decrease in the interest rate) affects house prices and the real economy through the asset price and the collateral channel. Then, they analyze how a house price shock in the periphery and a technology shock in the core countries are transmitted to both economies. Findings The authors find that a combination of an increase in liquidity in the euro area coming from the common monetary policy, together with asymmetric house price and technology shocks, contributed to an increase in house prices in the euro area and a stronger credit growth in the peripheral economies. Originality/value This paper represents the theoretical counterpart to empirical studies that show, through macroeconometric models, the interrelation between liquidity and other shocks with house prices. Using a DSGE model with housing, the authors disentangle the mechanisms behind these empirical findings.

Are regional house prices stationary in Iran? New evidence using Fourier quantile unit root test

2019 ◽  
Vol 12 (5) ◽  
pp. 849-864
Author(s):  
Arash Hadizadeh
Keyword(s):  
Interest Rates ◽  
Housing Market ◽  
Unit Root ◽  
House Prices ◽  
Housing Prices ◽  
Unit Root Test ◽  
Generalized Least Squares ◽  
Main Concern ◽  
Content Type ◽  
Positive Effects

Purpose In the Iranian economy, investing in the housing market has been very important and beneficial for investors and households, because of inflationary environment, low real interest rates, underdeveloped financial and tax systems and economic sanctions. Hence, prediction of house prices is the main concern of housing market agents in the economy. The purpose of this paper is to test the stationary properties of Iran's provinces to improve the prediction of future housing prices. Design/methodology/approach In this paper, the authors have tested the stationary properties of 20 Iran’s province centers over the period from 1993 to 2017 using a novel Fourier quantile unit root test and conventional ordinary/generalized least squares (O/GLS) linear unit root/stationary tests. Findings According to conventional O/GLS linear unit root/stationary tests, most of the house prices series exhibit random walk behavior, whereas by applying the Fourier quantile unit root test, the null hypothesis of unit root is rejected for 15 out of 20 series. Other results indicated that house prices of cities responded differently to positive and negative shocks. Originality/value Previous studies only addressed conventional OLS or GLS linear unit root or stationary tests, but novel Fourier quantile unit root test was not used. New results were obtained based on this unit root test, that, as a priori knowledge, will help benefiting from the positive effects, or avoiding being victimized by the negative effects.

scholarly journals The Relationship between Coaching Behavior and Athlete Burnout: Mediating Effects of Communication and the Coach–Athlete Relationship

2020 ◽  
Vol 17 (22) ◽  
pp. 8618
Author(s):  
Hunhyuk Choi ◽  
Yunduk Jeong ◽  
Suk-Kyu Kim
Keyword(s):  
Indirect Effects ◽  
Collegiate Athletes ◽  
Team Communication ◽  
Mediating Effects ◽  
Final Model ◽  
Athlete Burnout ◽  
Coaching Behavior ◽  
Study Participants ◽  
The Relationship ◽  
Shed Light

The purpose of this study was to investigate the relationships between perceived coaching behavior (autonomy-supportive and controlling), communication, coach–athlete relationship, and athlete burnout. The study participants comprised 347 Korean active collegiate athletes from 10 sports. The results of the final model indicated that autonomy-supportive coaching was positively related to communication, whereas controlling coaching was negatively related to communication. Communication was positively related to coach–athlete relationship and was negatively related to athlete burnout. Autonomy-supportive coaching was significantly related to both the coach–athlete relationship (positively) and athlete burnout (negatively), whereas controlling coaching was only related to athlete burnout (positively). Coach–athlete relationship was negatively related to athlete burnout. Significant indirect effects were observed. The bootstrapping results indicated that the relationship between autonomy-supportive and athlete burnout was mediated by team communication and the coach–athlete relationship. The study findings enhance our current understanding of the relationships between perceived coaching behavior and athlete burnout and shed light on the important roles of team communication and the coach–athlete relationship in the relationship.

scholarly journals Is the High Interest Rate Combined with Intense Deleveraging Campaign Desirable? A Collateral Mechanism under Stringent Credit Constraints

2018 ◽  
Vol 10 (12) ◽  
pp. 4803 ◽  
Author(s):  
Qiuyi Yang ◽  
Youze Lang ◽  
Changsheng Xu
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Banking Sector ◽  
Housing Prices ◽  
Policy Implications ◽  
Shadow Banking ◽  
High Interest Rate ◽  
Asset Bubbles ◽  
Collateral Constraints ◽  
High Level

Recently, China has witnessed a continuously increasing Debt-to-GDP ratio and a vigorously expanding shadow banking sector. Housing prices hovering at a high level seriously affect the lives of ordinary residents. Disappointingly, a variety of activities such as intense deleveraging campaigns and tight monetary controls produce little effect. Why do these seemingly rightful implementations hardly work? What should governments do to stop the incessant expansion of asset bubbles? What role ought financial supervisors to play in regulating credit markets and facilitating a sustainable and inclusive economic growth? This paper sets off from the pledgeability of asset bubbles and constructs a generalized overlapping generation (OLG) model incorporating financial frictions and collateral constraints, in order to explore the bubble evolution under the alterations of market interest rates and credit conditions. The results show a unique bubble equilibrium, in which the steady-state bubble size expands when interest rate increases. Numerical results further reveal that the bubble-inflation effect of a higher interest rate is reinforced by a more stringent collateral constraint. Our research contributes to an explanation of the inefficacy of present policies and provides the following policy implications: The combination of an interest rate elevation and a strong loan restriction is in fact undesirable for suppressing asset bubbles. Not merely does it strike productivity and capital formation, but it also fosters investors to hold more risky assets to solve liquidity shortage under constrained borrowing capacity.

scholarly journals THE SPECIAL EFFECT OF INTEREST RATE CUTS ON HOUSING PRICES

2021 ◽  
Vol 22 (3) ◽  
pp. 776-798
Author(s):  
Che-Chun Lin ◽  
I-Chun Tsai
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Structural Changes ◽  
Housing Prices ◽  
Housing Price ◽  
Theoretical Models ◽  
Rate Variation ◽  
Bubble Behavior ◽  
Special Effect ◽  
Home Prices

This study uses theoretical models and empirical research to explain that interest rates affect the structure of housing price formation and correction rather than affect the price alone. In particular, when interest rates are substantially reduced, the correction of housing prices toward fundamentals is absent; in other words, a housing bubble is likely to occur. This study first illustrates a model for explaining home price behavior. Data from the Case-Shiller U.S. National Home Price Index between January 1975 and August 2020 are adopted to observe the behavior of home prices. The empirical results show that the correction and bubble behavior of U.S. home prices have exhibited significant structural changes. Variation in money supply fails to explain the structural changes, however, interest rate variation can significantly affect the structural changes. According to the results, when interest rates rise or fall slightly, the correction of home prices toward the equilibrium value is significant. However, when interest rates fall substantially, the bubble behavior of home prices is significant. For governments that adopt low interest rates to revitalize the economy, the results of this study provide special reference values. Governments should provide additional intervention in housing markets when an extremely low interest rate exists.

scholarly journals THE MEDIATING EFFECTS OF AWARENESS ON THE RELATIONSHIP BETWEEN PROCUREMENT MANUAL COMPLIANCE’S BARRIERS AND COST PERFORMANCE OF CONSTRUCTION PROJECTS

2018 ◽  
Vol 16 ◽  
Author(s):  
Abdullahi Nafiu Zadawa ◽  
Abdul Aziz Hussin ◽  
Atasya Osmadi
Keyword(s):  
Confidence Interval ◽  
Mediation Analysis ◽  
Indirect Effects ◽  
Construction Projects ◽  
Public Procurement ◽  
Mediating Effects ◽  
Cost Performance ◽  
Interval Approach ◽  
The Relationship ◽  
Cost Aspect

Public Procurement Manual (PPM) are the procedural guidelines for executing public procurement practices including construction procurement. Compliance with PPM among construction procurement parties has been facing serious challenges which affects the performance of construction projects especially cost aspect. This study identified fraudulent practices as the major procurement manual compliances’ barriers affecting cost performance of construction projects. The paper examines the mediating effects of awareness on procurement manual compliance’s barriers affecting cost performance. Data was collected from the procurement entities of nine selected Nigerian federal universities. A mediation analysis was performed via bias-corrected bootstrapped confidence interval approach using Process Macro package. The indirect effects obtained was positive and different from zero, and the confidence interval within which the effect occur do not include zero indicating that awareness can mitigate the effects of fraudulent practices been compliance barriers affecting cost performance of construction projects.

Dynamic implications of GDP, interest rates, taxes, income, foreign direct investments, housing prices on property NPLs

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kuen-Wei Tham ◽  
Rosli Said ◽  
Yasmin Mohd Adnan
Keyword(s):  
Interest Rates ◽  
Global Financial Crisis ◽  
Housing Prices ◽  
Economic Environment ◽  
Macroeconomic Factors ◽  
Content Type ◽  
Macroeconomic Variables ◽  
Long Run ◽  
First Time

Purpose The study on how macroeconomic factors affect non-performing loans (NPLs) have not been focussed on property loans, which had been amongst the largest contributor of NPLs in many countries. At the same time, whilst there are many studies that focusses on NPLs during the recession and financial crises, not many studies focus on how macroeconomic factors affect property NPLs in a recovering economic environment. The purpose of this study seeks to fill the gap by analysing the relationships between gross domestic product (GDP), interest rates, income, foreign direct investments (FDI), housing prices and taxes on property NPLs with Malaysia as a case study in which NPLs rose for the first time after declining for almost a decade since the 2008–2009 global financial crisis. This study aims to understand the dynamics and direction of causation in relationships. Design/methodology/approach The author uses the auto regressive distribution lag analysis between the independent variables of GDP, interest rates, housing prices, service taxes, percapita income and FDI affecting the dependent variable of property NPLs from 2009 to 2017, during a unique period of recovering economic environment where NPLs rose for the first time in almost a decade of decline. Findings This study found that interest rates, housing prices, income, GDP and service taxes were found to possess long cause effects and long run elasticity with NPLs. At the same time, interest rates were found to implicate property NPLs significantly in longer periods, followed by GDP, housing prices, service taxes and income. FDIs were found to be insignificantly negative in implicating property NPLs in the long run. Research limitations/implications This paper allows policymakers to understand the dynamic implications of crucial macroeconomic factors in affecting NPLs so that appropriate strategic monetary policies could be formulated towards addressing them. More focus shall be given to addressing the long term implications of these factors on NPLs. Practical implications Appropriate strategic monetary policy making can be channelled towards addressing these factors via understanding the short and long term implications of macroeconomic variables on property NPLs. Policymakers can take note of the long cause effects and long run elasticity of average interest rates, housing prices, income levels, GDP and service taxes with property NPLs so that appropriate long term policies can be addressed to control the rise of property NPLs in the country. At the same time, priority should be given towards strengthening of the GDP of the country due to its strongest impact in long term effects with reduction of NPLs in the country. Social implications The insights from the present study suggest policymakers interested in bringing stability in the real estate finance system need to account for the various macroeconomic variables found in this study. Originality/value The paper is novel on at least two dimensions. First, this study involves focussing on a unique period of recovering economic environment where NPLs rose for the first time after a decade of decline since recovering from the 2008–2009 global financial crisis. At the same time, this study focusses on property NPLs, which is unique in nature compared to general NPLs. This study had enabled policymakers to better understand the dynamic implications of several macroeconomic variables affecting property NPLs and assist them in strategic monetary policy making.

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