Does credit rationing affect residential investment? Déj
✍ Scribed by Yoon Dokko; Robert H. Edelstein; E. Scott Urdang
- Book ID
- 104652876
- Publisher
- Springer US
- Year
- 1990
- Tongue
- English
- Weight
- 856 KB
- Volume
- 3
- Category
- Article
- ISSN
- 0895-5638
No coin nor oath required. For personal study only.
✦ Synopsis
This paper develops an empirical model to examine the impacts of credit rationing on residential investment for the 1960-1984 period. Our statistical results strongly support the position that noninterest rate variables affect mortgage activity and housing construction. Though we find a structural change in the housing construction and mortgage markets in the early 1980s, probably attributable to capital market integration and financial institutional deregulation, noninterest rate terms continue to matter. In other words, credit rationing continues to be an "allocative device" in the housing and mortgage markets.