Liquidity Constraints and the Centralized Home Mortgage Policy in China
Publikation: Working paper › Forskning
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Liquidity Constraints and the Centralized Home Mortgage Policy in China. / Gao, Cixiu.
2017.Publikation: Working paper › Forskning
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TY - UNPB
T1 - Liquidity Constraints and the Centralized Home Mortgage Policy in China
AU - Gao, Cixiu
PY - 2017
Y1 - 2017
N2 - This paper investigates China's centralized mortgage policy in general, and evaluates the policy change in 2011: the minimum down payment was dramatically raised to 60% of the home price. Using our previously developed structural model, we recover the unobserved liquidity wealth levels of individual borrowers. We provide quantitative evidence for the doubtful efficacy of the 2011 raise in the minimum down payment: it hurts the moderately-wealthy individuals, leaving them to struggle with high default risks, but doing little to prevent the rich from entering the market.
AB - This paper investigates China's centralized mortgage policy in general, and evaluates the policy change in 2011: the minimum down payment was dramatically raised to 60% of the home price. Using our previously developed structural model, we recover the unobserved liquidity wealth levels of individual borrowers. We provide quantitative evidence for the doubtful efficacy of the 2011 raise in the minimum down payment: it hurts the moderately-wealthy individuals, leaving them to struggle with high default risks, but doing little to prevent the rich from entering the market.
KW - Faculty of Social Sciences
KW - Housing mortgage
KW - Default
KW - Liquidity constraints
KW - China
KW - Structural modeling
KW - C54
KW - D82
KW - G21
M3 - Working paper
BT - Liquidity Constraints and the Centralized Home Mortgage Policy in China
ER -
ID: 169138114