Loan to value ratio and monetary transmission mechanism
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F19%3A00112148" target="_blank" >RIV/00216224:14560/19:00112148 - isvavai.cz</a>
Result on the web
<a href="http://www.eaco.eu/danube-journal/archive/" target="_blank" >http://www.eaco.eu/danube-journal/archive/</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.2478/danb-2019-0020" target="_blank" >10.2478/danb-2019-0020</a>
Alternative languages
Result language
angličtina
Original language name
Loan to value ratio and monetary transmission mechanism
Original language description
Using a dynamic stochastic general equilibrium model (DSGE) with the housing sector, this paper evaluates the impact of housing collateral on the business cycle in the Czech economy. We devote special attention to the setting of the loan to value (LTV) ratio, which we believe plays an important role as a regulator of the monetary transmission mechanism. The impacts of LTV ratio are quantified by simulating the responses of alternative LTV level setting on key macroeconomic variables. Our simulations are based on an estimated DSGE model. Our approach allows us to understand better the responses of the real economy to the tightening of monetary policy moderated by different LTV levels. Our results show that higher loan to value ratios strengthen the effect of the monetary transmission mechanism to consumption and output.
Czech name
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Czech description
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Classification
Type
J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2019
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
DANUBE: Law, Economics and Social Issues Review
ISSN
1804-6746
e-ISSN
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Volume of the periodical
10
Issue of the periodical within the volume
4
Country of publishing house
US - UNITED STATES
Number of pages
17
Pages from-to
383-399
UT code for WoS article
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EID of the result in the Scopus database
2-s2.0-85078399850