Banking Integration And House Price Comovement
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| Author | : Augustin Landier |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2013 |
| Genre | : Banks and banking |
| ISBN | : |
The correlation across US states in house price growth increased dramatically between 1976 and 2000. This paper shows that the contemporaneous geographic integration of the US banking market, via the emergence of large banks, was a primary driver of this phenomenon. To this end, we first theoretically derive an appropriate measure of banking integration across state pairs and document that house price growth correlation is strongly related to this measure of financial integration. Our IV estimates suggest that banking integration can explain up to one third of the rise in house price correlation over the period.
| Author | : Adrian Alter |
| Publisher | : International Monetary Fund |
| Total Pages | : 42 |
| Release | : 2018-11-28 |
| Genre | : Business & Economics |
| ISBN | : 1484385691 |
We examine the relationship between house price synchronicity and global financial conditions across 40 countries and about 70 cities over the past three decades. The role played by cross-border banking flows in residential property markets is examined as well. Looser global financial conditions are associated with greater house price synchronicity, even after controlling for bilateral financial integration. Moreover, we find that synchronicity across major cities may differ from that of their respective countries’, perhaps due to the influence of global investors on local house price dynamics. Policy choices such as macroprudential tools and exchange rate flexibility appear to be relevant for mitigating the sensitivity of domestic housing markets to the rest of the world.
| Author | : Jeffrey P. Cohen |
| Publisher | : |
| Total Pages | : |
| Release | : 2019 |
| Genre | : |
| ISBN | : |
| Author | : Charles Goodhart |
| Publisher | : Oxford University Press |
| Total Pages | : 247 |
| Release | : 2007 |
| Genre | : Business & Economics |
| ISBN | : 0199204594 |
House price bubbles, and their aftermath, have become a focus of macro-economic policy concern in most developed countries. This book elucidates the two-way relationship between house-price fluctuations and economic fundamentals. Housing has many features which make it distinct from other assets, like equity. Real estate is not only an asset but also a durable consumption good for households, providing shelter and other housing services. As a result, a house is often the largest and most important asset of households and therefore accounts for a major share of household wealth. Similarly a large share of bank assets is tied to housing values. House price fluctuations may, therefore, have a major effect on economic activity and the soundness of the financial system. Following an introductory chapter, the book is structured into three parts. The first demonstrates the importance of house prices as determinants or indicators of inflation and economic activity. The second focuses on the inter-relationships between bank credit extension and housing prices, and how bubbles can lead to financial crises. The third discusses resultant public policy issues, such as whether, and how, to include housing prices in a general inflation index, and how to restrain the housing/bank credit cycle.
| Author | : Luc Nijs |
| Publisher | : Springer Nature |
| Total Pages | : 822 |
| Release | : 2020-06-30 |
| Genre | : Business & Economics |
| ISBN | : 3030347435 |
This global handbook provides an up-to-date and comprehensive overview of shadow banking, or market-based finance as it has been recently coined. Engaging in financial intermediary services outside of normal regulatory parameters, the shadow banking sector was arguably a critical factor in causing the 2007-2009 financial crisis. This volume focuses specifically on shadow banking activities, risk, policy and regulatory issues. It evaluates the nexus between policy design and regulatory output around the world, paying attention to the concept of risk in all its dimensions—the legal, financial, market, economic and monetary perspectives. Particular attention is given to spillover risk, contagion risk and systemic risk and their positioning and relevance in shadow banking activities. Newly introduced and incoming policies are evaluated in detail, as well as how risk is managed, observed and assessed, and how new regulation can potentially create new sources of risk. Volume I concludes with analysis of what will and still needs to happen in the event of another crisis. Proposing innovative suggestions for improvement, including a novel Pigovian tax to tame financial and systemic risks, this handbook is a must-read for professionals and policy-makers within the banking sector, as well as those researching economics and finance.
| Author | : International Monetary Fund. Monetary and Capital Markets Department |
| Publisher | : International Monetary Fund |
| Total Pages | : 152 |
| Release | : 2018-04-18 |
| Genre | : Business & Economics |
| ISBN | : 1484348761 |
The April 2018 Global Financial Stability Report (GFSR) finds that short-term risks to financial stability have increased somewhat since the previous GFSR. Medium-term risks are still elevated as financial vulnerabilities, which have built up during the years of accommodative policies, could mean a bumpy road ahead and put growth at risk. This GFSR also examines the short- and medium-term implications for downside risks to growth and financial stability of the riskiness of corporate credit allocation. It documents the cyclical nature of the riskiness of corporate credit allocation at the global and country levels and its sensitivity to financial conditions, lending standards, and policy and institutional settings. Another chapter analyzes whether and how house prices move in tandem across countries and major cities around the world—that is, global house price synchronicity.
| Author | : Mark J Boleat |
| Publisher | : Routledge |
| Total Pages | : 194 |
| Release | : 2012-05-31 |
| Genre | : Business & Economics |
| ISBN | : 1136272984 |
Beginning with a theoretical analysis of housing finance in the context of housing markets and financial intermediation generally, the authors then analyse, drawing on international experience, each of the main types of housing finance system: informal, deposit taking, contract and mortgage bank. Various aspects of the market are covered using examples drawn from the UK and elsewhere, including the regulatory framework, contemporary developments and securitization and secondary markets. Critical public policy issues, such as housing and the real economy, and housing subsidies, are analysed in detail. Finally the authors examine the future for housing and the housing finance market.
| Author | : Franklin Allen |
| Publisher | : Pearson Prentice Hall |
| Total Pages | : 214 |
| Release | : 2012 |
| Genre | : Business & Economics |
| ISBN | : 0137011601 |
Explains the financial history leading to the mortgage meltdown and assesses today's housing finance systems in the United States and abroad.
| Author | : Zhengyi Zhou |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2023 |
| Genre | : |
| ISBN | : |
This paper studies the effect of house price co-movement on inter-city labor migration. We construct instrumental variables for pairwise house price co-movement with banking integration, which is largely exogenous given the institutional background of China. We find that house price co-movement increases inter-city migration flows. We further provide micro-level evidence for the hedging incentive as the underlying channel. In particular, the relationship between house price co-movement and migrants' destination choice varies with the individual characteristics that are supposed to be related to the strength of hedging incentive. Our finding that house price co-movement facilitates labor migration through the hedging incentive channel has policy implications for countries with volatile house prices.
| Author | : Mr.Hideaki Hirata |
| Publisher | : International Monetary Fund |
| Total Pages | : 47 |
| Release | : 2013-02-06 |
| Genre | : Business & Economics |
| ISBN | : 1475591608 |
We examine the properties of house price fluctuations across 18 advanced economies over the past 40 years. We ask two specific questions: First, how synchronized are housing cycles across these countries? Second, what are the main shocks driving movements in global house prices? To address these questions, we first estimate the global components in house prices and various macroeconomic and financial variables. We then evaluate the roles played by a variety of global shocks, including shocks to interest rates, monetary policy, productivity, credit, and uncertainty, in explaining house price fluctuations using a wide range of FAVAR models. We find that house prices are synchronized across countries, and the degree of synchronization has increased over time. Global interest rate shocks tend to have a significant negative effect on global house prices whereas global monetary policy shocks per se do not appear to have a sizeable impact. Interestingly, uncertainty shocks seem to be important in explaining fluctuations in global house prices.
