Volume 15, Issue 3 (Summer 2020)
J. Mon. Ec. 2020, 15(3): 253-271 |
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Afshari Z, Salimi Z. The Effectiveness of Regulatory Policies in Curbing the Housing Price in Iran. J. Mon. Ec. 2020; 15 (3) :253-271
URL: http://jme.mbri.ac.ir/article-1-487-en.html
URL: http://jme.mbri.ac.ir/article-1-487-en.html
1- Department of Economics, Faculty of Social Sciences and Economics, Alzahra University
2- Alzahra University
2- Alzahra University
Abstract: (1459 Views)
IIn recent years, policymakers have generally relied on regulatory policies to address financial stability concerns. However, our understanding of these policies and their efficacy in curbing housing prices is limited. In this paper, we examine the impact of three regulatory tools i.e. LTV (loan to value) ratio, reserve requirement rate (RR), and capital adequacy ratio (CAR) on housing price inflation in Iran for the1993: Q2 to 2017:Q1 period. We investigate whether tightening the policy tools are effective in curbing the housing price inflation by using a vector autoregressive model. The results indicate that all three regulatory policy tools exhibit countercyclical impact on housing inflation, but with varying degrees of influence. While the impact of CAR tightening in curbing housing prices is quite trivial, the impact of RR and LTV tightening are roughly significant.
Type of Study: Original Research - Theoric |
Subject:
Monetary Economics
Received: 26 Feb 2020 | Accepted: 29 Jan 2021 | Published: 4 May 2021
Received: 26 Feb 2020 | Accepted: 29 Jan 2021 | Published: 4 May 2021
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