REICHEL, Vlastimil, Daniel NĚMEC and Jakub CHALMOVIANSKÝ. Loan to value ratio and monetary transmission mechanism. DANUBE: Law, Economics and Social Issues Review. 2019, vol. 10, No 4, p. 383-399. ISSN 1804-6746. doi:10.2478/danb-2019-0020.
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Basic information
Original name Loan to value ratio and monetary transmission mechanism
Authors REICHEL, Vlastimil (203 Czech Republic, guarantor, belonging to the institution), Daniel NĚMEC (203 Czech Republic, belonging to the institution) and Jakub CHALMOVIANSKÝ (703 Slovakia, belonging to the institution).
Edition DANUBE: Law, Economics and Social Issues Review, 2019, 1804-6746.
Other information
Original language English
Type of outcome Article in a journal
Field of Study 50202 Applied Economics, Econometrics
Country of publisher United States of America
Confidentiality degree is not subject to a state or trade secret
RIV identification code RIV/00216224:14560/19:00112148
Organization unit Faculty of Economics and Administration
Keywords in English Housing Sector; Loan to Value Ratio; DSGE Model; Monetary Transmission Mechanism; Czech Republic
Tags International impact, Reviewed
Changed by Changed by: Mgr. Daniela Marcollová, učo 111148. Changed: 11/5/2020 16:15.
Using a dynamic stochastic general equilibrium model (DSGE) with the housing sector, this paper evaluates the impact of housing collateral on the business cycle in the Czech economy. We devote special attention to the setting of the loan to value (LTV) ratio, which we believe plays an important role as a regulator of the monetary transmission mechanism. The impacts of LTV ratio are quantified by simulating the responses of alternative LTV level setting on key macroeconomic variables. Our simulations are based on an estimated DSGE model. Our approach allows us to understand better the responses of the real economy to the tightening of monetary policy moderated by different LTV levels. Our results show that higher loan to value ratios strengthen the effect of the monetary transmission mechanism to consumption and output.
MUNI/A/0972/2018, interní kód MUName: Dynamické modelování strukturálních změn trhu práce a trhu s nemovitostmi v průběhu hospodářského cyklu
Investor: Masaryk University, Category A
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