IDEAS home Printed from https://ideas.repec.org/a/eme/ijhmap/ijhma-07-2017-0063.html
   My bibliography  Save this article

Bank lending and housing prices in Sweden

Author

Listed:
  • Peter Öhman
  • Darush Yazdanfar

Abstract

Purpose - The purpose of this study is to investigate the Granger causal link between bank lending and housing prices. Design/methodology/approach - Several econometric methods, including Granger causality tests based on a vector error correction model, were applied to analyse monthly time series data in the Swedish context. The data cover bank lending, apartment prices, villa prices, mortgage rates and the consumer price index from September 2005 to October 2013. Findings - The results indicate that bank lending and housing prices are cointegrated. According to Granger causality tests, bidirectional relationships exist between bank lending and each of apartment and villa prices, confirming the financial accelerator mechanism. However, earlier shocks arising from housing prices themselves account for the greatest variation in future prices. Originality/value - To the authors’ knowledge, this study represents the first analysis of the causal link between bank lending and the housing market in terms of apartment and villa prices in the Swedish context.

Suggested Citation

  • Peter Öhman & Darush Yazdanfar, 2018. "Bank lending and housing prices in Sweden," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 11(3), pages 498-519, April.
    • Handle: RePEc:eme:ijhmap:ijhma-07-2017-0063
    DOI: 10.1108/IJHMA-07-2017-0063
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJHMA-07-2017-0063/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJHMA-07-2017-0063/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/IJHMA-07-2017-0063?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ijhmap:ijhma-07-2017-0063. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.