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@article{ART002976754},
author={Doowon Bang and Han SeoungUk and Kwon, HyuckShin},
title={The Impact Analysis of Housing Finance Policies on Household Debt and Housing cycle},
journal={Asset Management Review},
issn={2288-6672},
year={2023},
volume={11},
number={1},
pages={33-55},
doi={10.23007/amr.2023.11.1.33}

TY - JOUR
AU - Doowon Bang
AU - Han SeoungUk
AU - Kwon, HyuckShin
TI - The Impact Analysis of Housing Finance Policies on Household Debt and Housing cycle
JO - Asset Management Review
PY - 2023
VL - 11
IS - 1
PB - Institute of Management Research, SungKyunKwan University
SP - 33
EP - 55
SN - 2288-6672
AB - To analyze the impact of housing finance policies (LTV, DTI, and DSR) on the housing cycle and household debt, we first estimated common factors that can represent the housing market economy. Then, we analyzed household debt determinants including common factors. After that, we analyzed both the linear and non-linear causal relationship between the housing cycle and household debt determinants. Finally, we analyzed the relations among housing policies, the housing cycle, and housing debt. The results of the empirical analysis show that each housing policy (LTV, DTI, and DSR) has a direct impact on household debt. In other words, we found that household debt increases when the LTV/DTI limit is eased or the DSR regulation is not applied. According to the analysis of the determinants of household debt, in the model including LTV/DTI, if the household debt interest rate goes up, consumer price rises, or the unemployment rate increases, the total amount of household debt would decrease. Furthermore, an improvement in the housing economy or a relaxation of the LTV/DTI regulation would result in an increase in total household debt. In the DSR model, the results showed that the total amount of household debt decreased when the consumer price index rose or the unemployment rate increased. Finally, we confirm the existence of a two-way causal relationship between the housing cycle and household debt using the linear/nonlinear model. Our study aims to confirm the effects of policy variables, namely LTV, DTI, and DSR, on household debt and to determine the two-way causal relationship between the housing cycle and household debt. However, it is important to note that our research has its limitations, and therefore, we plan to conduct a follow-up study to further explore these topics.
KW - Housing Finance Policies (LTV·DTI·DRS);Housing common factor;Household debt;Single index model;Non-linear Causality;STAR(smooth transition autoregressive) model
DO - 10.23007/amr.2023.11.1.33
ER -

Doowon Bang, Han SeoungUk and Kwon, HyuckShin. (2023). The Impact Analysis of Housing Finance Policies on Household Debt and Housing cycle. Asset Management Review, 11(1), 33-55.

Doowon Bang, Han SeoungUk and Kwon, HyuckShin. 2023, "The Impact Analysis of Housing Finance Policies on Household Debt and Housing cycle", Asset Management Review, vol.11, no.1 pp.33-55. Available from: doi:10.23007/amr.2023.11.1.33

Doowon Bang, Han SeoungUk, Kwon, HyuckShin "The Impact Analysis of Housing Finance Policies on Household Debt and Housing cycle" Asset Management Review 11.1 pp.33-55 (2023) : 33.

Doowon Bang, Han SeoungUk, Kwon, HyuckShin. The Impact Analysis of Housing Finance Policies on Household Debt and Housing cycle. 2023; 11(1), 33-55. Available from: doi:10.23007/amr.2023.11.1.33

Doowon Bang, Han SeoungUk and Kwon, HyuckShin. "The Impact Analysis of Housing Finance Policies on Household Debt and Housing cycle" Asset Management Review 11, no.1 (2023) : 33-55.doi: 10.23007/amr.2023.11.1.33

Doowon Bang; Han SeoungUk; Kwon, HyuckShin. The Impact Analysis of Housing Finance Policies on Household Debt and Housing cycle. Asset Management Review, 11(1), 33-55. doi: 10.23007/amr.2023.11.1.33

Doowon Bang; Han SeoungUk; Kwon, HyuckShin. The Impact Analysis of Housing Finance Policies on Household Debt and Housing cycle. Asset Management Review. 2023; 11(1) 33-55. doi: 10.23007/amr.2023.11.1.33

Doowon Bang, Han SeoungUk, Kwon, HyuckShin. The Impact Analysis of Housing Finance Policies on Household Debt and Housing cycle. 2023; 11(1), 33-55. Available from: doi:10.23007/amr.2023.11.1.33

Doowon Bang, Han SeoungUk and Kwon, HyuckShin. "The Impact Analysis of Housing Finance Policies on Household Debt and Housing cycle" Asset Management Review 11, no.1 (2023) : 33-55.doi: 10.23007/amr.2023.11.1.33