ASSESSING EXPLANATORY POWER OF HOUSEHOLD DEBT FOR HOUSE PRICES

• Authors: Gertler Ľubomíra , Sivák Rudolf , Kiseľáková Dana
• Languages of publication: EN

Abstracts

EN

This paper contributes to the evidence that household credit relative to disposable income is a useful factor to inform house prices. This finding is observable both from persistent direct link between the two variables as well as from the relationship of credit with a residual of house price valuation equation. The latter has capacity also in its simplest form to identify overvaluation or undervaluation of property prices and relate them to actual market corrections observable over the post-crisis period in individual countries.

Keywords

EN

HOUSEHOLD DEBT; CREDIT GROWTH; HOUSE PRICES

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2017
• Volume: 65
• Issue: 4
• Pages: 355 – 369

Contributors

author

Gertler Ľubomíra

• University of Economics in Bratislava, Faculty of National Economy, Department of Finance, Dolnozemská cesta 1, 852 35 Bratislava, Slovak Republic

author

Sivák Rudolf

author

Kiseľáková Dana