Macroprudential Policy, Mortgage Cycles, and Distributional Effects: Evidence from the United Kingdom
نویسندگان
چکیده
Abstract We analyze the distributional effects of macroprudential policy on mortgage cycles by exploiting U.K. register and a 2014 15% limit imposed lenders' high loan-to-income (LTI) mortgages. Constrained lenders issue fewer more expensive high-LTI mortgages, with stronger low-income borrowers. Unconstrained strongly substitute loans in local areas higher constrained lender presence, but not to borrowers—consistent adverse selection problems—implying lower overall credit Consistently, policy-affected experience house price growth postregulation and, following Brexit referendum (negative aggregate shock), better defaults for
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ژورنال
عنوان ژورنال: Review of Financial Studies
سال: 2023
ISSN: ['0893-9454', '1465-7368']
DOI: https://doi.org/10.1093/rfs/hhad070