TY - JOUR
T1 - Dynamic analysis of the effects of mortgage-lending policies in a real estate market
AU - Hwang, Sungjoo
AU - Park, Moonseo
AU - Lee, Hyun Soo
PY - 2013/5
Y1 - 2013/5
N2 - The Korean government announced new policies to regulate mortgage lending that aim to decrease both the loan-to-value ratio and the debt-to-income ratio, in 2008. These policies were implemented on the expectation that they will control housing demand and stabilize house prices, focusing only on the current market status. However, it is difficult to analyze the effectiveness of these kinds of policies using an empirical approach. Consequently, a comprehensive and dynamic method is necessary for analyzing the effects of policies. This paper, therefore, develops an integrated and dynamic model for analyzing policy impacts. Using this model, the validity of mortgage-lending policies is assessed, and the interplay between various factors (including mortgage loans, housing prices, and demand) is examined. The model is also used to analyze unnoticed side effects in the real estate and financial markets. The dynamic analysis in this research can be applied not only to policy implication, but also to other dynamic fields such as project management, financial planning and demand analysis.
AB - The Korean government announced new policies to regulate mortgage lending that aim to decrease both the loan-to-value ratio and the debt-to-income ratio, in 2008. These policies were implemented on the expectation that they will control housing demand and stabilize house prices, focusing only on the current market status. However, it is difficult to analyze the effectiveness of these kinds of policies using an empirical approach. Consequently, a comprehensive and dynamic method is necessary for analyzing the effects of policies. This paper, therefore, develops an integrated and dynamic model for analyzing policy impacts. Using this model, the validity of mortgage-lending policies is assessed, and the interplay between various factors (including mortgage loans, housing prices, and demand) is examined. The model is also used to analyze unnoticed side effects in the real estate and financial markets. The dynamic analysis in this research can be applied not only to policy implication, but also to other dynamic fields such as project management, financial planning and demand analysis.
KW - DTI
KW - Housing policy
KW - LTV
KW - Mortgage loans
KW - Real estate
UR - http://www.scopus.com/inward/record.url?scp=84875636066&partnerID=8YFLogxK
U2 - 10.1016/j.mcm.2011.06.023
DO - 10.1016/j.mcm.2011.06.023
M3 - Article
AN - SCOPUS:84875636066
SN - 0895-7177
VL - 57
SP - 2106
EP - 2120
JO - Mathematical and Computer Modelling
JF - Mathematical and Computer Modelling
IS - 9-10
ER -