What is the impact of macroprudential regulations on the Swedish housing market?

Housing shortages and urbanization have led to higher house prices levels of household debt. Sweden's Financial Supervisory Authority has introduced several borrower-based, macroprudential tools control debt growth over the last ten years. In 2010, a mortgage loan-to-value (LTV) ratio was introduced, in 2016, amortization 1 percent loan balance mandated by law if mortgage's value than 50 property value. Furthermore, 2018, requirement tightened, as all households with valued at larger 4.5 times their annual income were forced be amortized balance. The question is whether Authority's exerted intended effect. We combine hedonic regression modeling approach discontinuity design (RDD) estimate causal impact on prices. effect these estimated single-family housing market condominium market. are using microdata one million transactions between 2008 2019. Our estimates indicate that 2016 resulted negative around 7 but slightly lower from 2018 requirement. 2010 LTV did not dwellings.