TY  - JOUR
AB  - Purpose This paper aims to investigate the mutual dependence between housing prices and housing credit in Estonia, a country that experienced rapid debt accumulation during the 2000s and big swings in house prices during that period.Design/methodology/approach The authors use Bayesian econometric methods on data spanning 2000–2015.Findings The estimations show the interdependence between house prices and housing credit. More importantly, negative housing credit innovations had a stronger effect on house prices than positive ones.Originality/value The asymmetry in the linkage between housing credit and house prices highlights important policy implications, in that if central banks increase capital buffers during good times, they can release credit conditions during hard times to alleviate the negative spillover into house prices and the real economy.
VL  - 48
IS  - 1
SN  - 0144-3585
DO  - 10.1108/JES-11-2019-0519
UR  - https://doi.org/10.1108/JES-11-2019-0519
AU  - Cuestas Juan Carlos
AU  - Kukk Merike
PY  - 2020
Y1  - 2020/01/01
TI  - The interaction between housing prices and housing credit: evidence from a country with rapid credit accumulation
T2  - Journal of Economic Studies
PB  - Emerald Publishing Limited
SP  - 191
EP  - 209
Y2  - 2024/04/24
ER  -