Szumilo, N. and Vanino, E. (2021) Are government and bank loans substitutes or complements? Evidence from spatial discontinuity in equity loans. Real Estate Economics, 49 (3). pp. 968-996. ISSN 1080-8620
Abstract
This article studies the impact of an increase in the limit of a direct equity loan provided by the U.K. government to finance mortgage deposits on aggregate mortgage lending by banks. It uses the spatial discontinuity methodology and takes advantage of the natural experiment which occurred when the limit of equity loans increased in London after the reform of the Help‐to‐Buy (HTB) scheme. By comparing postcode sectors on the opposite sides of the London boundary, we measure the impact of the new policy on very similar housing markets. The results show that higher equity loans increase aggregate mortgage lending by banks.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2018 American Real Estate and Urban Economics Association. This is an author-produced version of a paper subsequently published in Real Estate Economics. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Housing finance; mortgages; credit markets; government loans |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 08 Oct 2019 12:57 |
Last Modified: | 16 Dec 2021 11:40 |
Status: | Published |
Publisher: | Wiley |
Refereed: | Yes |
Identification Number: | 10.1111/1540-6229.12261 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:151923 |