Loan-to-Value Ratio and Housing Price: Empirical Evidence From Indonesia

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dc.contributor.author Lim, Charvin
dc.contributor.author Nugraheni, Siwi
dc.date.accessioned 2018-05-09T01:25:54Z
dc.date.available 2018-05-09T01:25:54Z
dc.date.issued 2017
dc.identifier.issn 1411-6081 Print
dc.identifier.other artsc289
dc.identifier.uri http://hdl.handle.net/123456789/5921
dc.description JURNAL EKONOMI PEMBANGUNAN; Vol.18 No.2, 2017. en_US
dc.description.abstract The subprime mortgage crisis in 2007-2009 which led to a global recession has highlighted the importance of regulating credit for housing market. The urgency arises not only to manage non-performing ratio, but further to manage price in the housing market which is a potent source of financial imbalance. Loan-to-value (LTV) regulation is imposed in order to dampen the housing price cycle, preventing the occurrence of bubble issue. This study tries to capture the influence of LTV implementation on housing price and assesses its effectiveness in the national scope. Error correction model is used to portray the short and long-term dynamics of housing cycle with regard to policy, macroeconomic, and financial variables. We concluded that LTV is an effective policy to dampen the price cycle in the long run, but not in the short run. In the short run, housing price is closely determined by the macroeconomic factors. Furthermore, we found that the implementation of LTV has made housing price to become more persistent, suggesting a change in the market expectation structure and the behavior of housing price cycle. en_US
dc.description.uri http://journals.ums.ac.id/index.php/JEP/article/view/4846/3585
dc.language.iso en en_US
dc.publisher Muhammadiyah University Press Yogyakarta en_US
dc.relation.ispartofseries JURNAL EKONOMI PEMBANGUNAN;Vol.18 No.2, 2017.
dc.subject FINANCIAL STABILITY en_US
dc.subject MCROPRUDENTIAL POLICY en_US
dc.subject HOUSING PRICE en_US
dc.title Loan-to-Value Ratio and Housing Price: Empirical Evidence From Indonesia en_US
dc.type Journal Articles en_US


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