Economics at your fingertips  

Bank Lending and Property Prices: Some International Evidence

Boris Hofmann ()

No 222003, Working Papers from Hong Kong Institute for Monetary Research

Abstract: This paper analyses the patterns of dynamic interaction between bank lending and property prices based on a sample of 20 countries using both time series and panel data techniques. Long-run causality appears to go from property prices to bank lending. This finding suggests that property price cycles, reflecting changing beliefs about future economic prospects, drive credit cycles, rather than excessive bank lending being the cause of property price bubbles. There is also evidence of short-run causality going in both directions, implying that a mutually reinforcing element in past boom-bust cycles in credit and property markets cannot be ruled out.

Pages: 20 pages
Date: 2003-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed

Downloads: (external link) (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Internal Server Error ( [301 Moved Permanently]--> [301 Moved Permanently]-->

Related works:
Working Paper: Bank lending and property prices: some international evidence (2004) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Working Papers from Hong Kong Institute for Monetary Research Contact information at EDIRC.
Bibliographic data for series maintained by HKIMR ().

Page updated 2021-04-07
Handle: RePEc:hkm:wpaper:222003