IDEAS home Printed from https://ideas.repec.org/a/voj/journl/v61y2014i2p145-160id70.html
   My bibliography  Save this article

Housing Market-Bank Credit Relationship: Some Thoughts on Its Causality

Author

Listed:
  • Philip Arestis
  • Ana Rosa González

Abstract

The dominance of the orthodox paradigm over the last decades prior to the “great recession” left no room for the notion of “endogenous money” in the development of economic theory. However, this alternative direction of the causality of demand for money-credit and economic activity has been present in the heterodox economic thought since the 1930s and should be reconsidered in the current situation. In this context, the numerous episodes of housing bubbles, which have been taking place since 2007, create the perfect “environment” to explore the notion of “dynamic monetized production economy”. Our theoretical framework is estimated econometrically by using a sample of 6 developed economies which spans from 1970 to 2011. The non-stationary “nature” of our data recommends the use of cointegration techniques (Søren Johansen 1995) in order to estimate our models. Key words: Bank credit, Collateral channel, Financial wealth, Housing market, Cointegration.JEL: C22, R31.

Suggested Citation

  • Philip Arestis & Ana Rosa González, 2014. "Housing Market-Bank Credit Relationship: Some Thoughts on Its Causality," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 61(2), pages 145-160.
    • Handle: RePEc:voj:journl:v:61:y:2014:i:2:p:145-160:id:70
    as

    Download full text from publisher

    File URL: https://panoeconomicus.org/index.php/jorunal/article/view/70/65
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Bank credit; Collateral channel; Financial wealth; Housing market; Cointegration;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

    Statistics

    Access and download statistics

    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:voj:journl:v:61:y:2014:i:2:p:145-160:id:70. 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: Ivana Horvat (email available below). General contact details of provider: https://panoeconomicus.org/index.php/jorunal/ .

    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.