2019/10/18 by Cengiz Tunc, Cengiz Tunç
Economics, Econometrics and Finance · Business, Management and Accounting · #Housing Market and Economics #Financial Literacy, Pension, Retirement Analysis #Banking stability, regulation, efficiency
paper · doi:10.1080/10511482.2019.1661266
This article examines the effect of exogeneous credit supply shocks on house prices in an emerging economy, Turkey, using bank deposits, the number of branches, and financial literacy as instruments to estimate exogenous credit supply. Utilizing data for 26 regions and from 2010 to 2017, I find that an exogenous expansion in housing credits as well as consumer credits utilized has a large and significant effect on prices. A similar effect holds for quality-adjusted hedonic house prices. The results have important policy implications for credit-driven emerging economies.