Do Macroprudential Measures Increase Inequality? Evidence from the Euro Area Household Survey
نویسندگان
چکیده
Borrower-based macroprudential (MP) policies - such as caps on loan-to-value (LTV) ratios and debt-service-to-income (DSTI) limits contain the build-up of systemic risk by reducing probability conditional impact a crisis. While LTV/DSTI can increase inequality at introduction, they dampen in under adverse macroeconomic conditions. The relative size these opposing effects is an empirical question. We conduct counterfactual simulations different policy scenarios using granular income wealth data from Households Finance Consumption Survey (HFCS) for Ireland, Italy, Netherlands Portugal. Simulation results show that borrower-based measures have moderate negative welfare terms negligible inequality. JEL Classification: G21, G28, G51
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ژورنال
عنوان ژورنال: Social Science Research Network
سال: 2021
ISSN: ['1556-5068']
DOI: https://doi.org/10.2139/ssrn.3870018