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Residential Construction and Credit Market Imperfection


  • Chan, Thomas Sai-fan


Using the asset market equilibrium approach, the effects of Financial Regulations, Reform, Recovery, and Enforcement Act (1989), of the new housing selling time, and of the commercial paper-Treasury Bill spread, through the credit markets, on total and speculative single-family housing construction are investigated. A new speculative single-family housing starts series is developed for this analysis. The credit-market factors appear to affect both the cost of construction loans and the price elasticity of single-family housing construction. These effects are especially strong on speculative housing construction. Copyright 1999 by Kluwer Academic Publishers

Suggested Citation

  • Chan, Thomas Sai-fan, 1999. "Residential Construction and Credit Market Imperfection," The Journal of Real Estate Finance and Economics, Springer, vol. 18(1), pages 125-139, January.
  • Handle: RePEc:kap:jrefec:v:18:y:1999:i:1:p:125-39

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    References listed on IDEAS

    1. Peter Linneman & Susan Wachter, 1989. "The Impacts of Borrowing Constraints on Homeownership," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 17(4), pages 389-402.
    2. Anthony Pennington-Cross & Joseph Nichols, 2000. "Credit History and the FHA-Conventional Choice," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 28(2), pages 307-336.
    3. Hendershott, Patric H. & LaFayette, William C. & Haurin, Donald R., 1997. "Debt Usage and Mortgage Choice: The FHA-Conventional Decision," Journal of Urban Economics, Elsevier, vol. 41(2), pages 202-217, March.
    4. Pennington-Cross, Anthony, 2003. "Credit History and the Performance of Prime and Nonprime Mortgages," The Journal of Real Estate Finance and Economics, Springer, vol. 27(3), pages 279-301, November.
    5. Donald R. Haurin & Susan M. Wachter & Patric H. Hendershott, 1995. "Wealth Accumulation and Housing Choices of Young Households: An Exploratory Investigation," NBER Working Papers 5070, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Doling, John & Vandenberg, Paul & Tolentino, Jade, 2013. "Housing and Housing Financeā€”A Review of the Links to Economic Development and Poverty Reduction," ADB Economics Working Paper Series 362, Asian Development Bank.
    2. Cho, Seong-Hoon & English, Burton C. & Roberts, Roland K., 2005. "A Spatial Analysis of Housing Growth," The Review of Regional Studies, Southern Regional Science Association, vol. 35(3), pages 311-335.
    3. Su Han Chan & Ko Wang & Jing Yang, 2016. "The Pricing of Construction Loans," International Real Estate Review, Asian Real Estate Society, vol. 19(4), pages 411-434.
    4. Ball, Michael & Meen, Geoffrey & Nygaard, Christian, 2010. "Housing supply price elasticities revisited: Evidence from international, national, local and company data," Journal of Housing Economics, Elsevier, vol. 19(4), pages 255-268, December.
    5. (No last name available), Himanshu, 2013. "Poverty and Food Security in India," ADB Economics Working Paper Series 369, Asian Development Bank.
    6. Debuque-Gonzales, Margarita, 2013. "Empirical Determinants and Patterns of Research and Development Investment in Asia," ADB Economics Working Paper Series 364, Asian Development Bank.
    7. McDonald, John F. & McMillen, Daniel P., 2000. "Residential Building Permits in Urban Counties: 1990-1997," Journal of Housing Economics, Elsevier, vol. 9(3), pages 175-186, September.

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