Document Type
Article
Abstract
We investigate the long-term cointegration relation between residential property prices, household credit expansion, and household income expectations and identify the channels through which income expectation impacts residential property prices in the short term for Indonesia and Brazil. We find that improved income expectations raise the demand for credit, impacting residential property prices. Similar improvementsin income expectations also serve as important indicators for credit policy decisions, making more funding available to the household sector against the backdrop of rising property prices. In the short run, property prices respond significantly to one-time shocks in income expectations in Indonesia, while credit to households responds positively to property prices and private consumption expenditures in Brazil.
Recommended Citation
Ali Ahmed, Huson
(2020)
"INCOME EXPECTATIONS, CREDIT TO HOUSEHOLDS, AND PROPERTY PRICES: EVIDENCE FROM INDONESIA AND BRAZIL,"
Bulletin of Monetary Economics and Banking: Vol. 23:
No.
0, Article 6.
DOI: https://doi.org/10.21098/bemp.v23i0.1174
Available at:
https://bulletin.bmeb-bi.org/bmeb/vol23/iss0/6
First Page
33
Last Page
60
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Country
Australia
Affiliation
Deakin University
