House Prices And Mortgage Credit: Empirical Evidence For Ireland
AbstractIn Ireland, real property prices increased at an average of 12 per cent per annum from 1996 to 2002 with residential mortgage credit also increasing substantially. In this paper, the relationship between domestic bank credit and Irish house prices is examined empirically. Using a number of econometric approaches, we find evidence of a long-run mutually reinforcing relationship. The results are used to underpin a short-run system of the housing and credit sector. Simulations are then conducted to reveal the response of house prices and credit to once-off increases in key explanatory variables. Copyright � 2007 The Authors; Journal compilation � 2007 Blackwell Publishing Ltd and The University of Manchester.
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Bibliographic InfoArticle provided by University of Manchester in its journal Manchester School.
Volume (Year): 75 (2007)
Issue (Month): 1 (01)
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Other versions of this item:
- Fitzpatrick, Trevor & McQuinn, Kieran, 2004. "House Prices and Mortgage Credit: Empirical Evidence for Ireland," Research Technical Papers 5/RT/04, Central Bank of Ireland.
- E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
- E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
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