The effects of the supply of credit on real estate prices: Venezuela as a policy laboratory

Claire Boeing-Reicher and David Pinto

No 2066, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: We identify the effects of the supply of mortgage credit on house prices, using the politicallydirected credit-targeting regime of Venezuela as quasi-natural experiment. We find a large effect of the supply of housing credit on time path of house prices (or housing Markups), with an elasticity of housing markups with respect to credit of about 0.23 under our baseline specification, and similar results under a set of alternative specifications. These estimates are close to previous panel estimates for the United States, which suggests that these estimates capture similar phenomena.

Keywords: house prices; credit supply; Venezuela; credit targeting (search for similar items in EconPapers)
JEL-codes: E51 E65 R31 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-ban, nep-mac and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkwp:2066

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