Paper #1613

Títol:

The financial transmission of housing booms: evidence from Spain

Autors:

Alberto Martin, Enrique Moral-Benito i Tom Schmitz

Data:

Juny 2018 (Revisió: Setembre 2020)

Resum:

How does a housing boom affect credit to non-housing firms? Using bank, firm and loan-level microdata, we show that the Spanish housing boom reduced non-housing credit growth during its first years, but stimulated it later on. These patterns can be rationalized by financial constraints for banks. Constrained banks initially accommodated higher housing credit demand by reducing non-housing credit. Eventually, however, the housing boom increased bank net worth and expanded credit supply. A quantitative model, disciplined by our cross-sectional estimates, indicates that the crowding-out effect was substantial but temporary, and had been fully absorbed by the end of the boom.

Paraules clau:

Housing bubble, credit, investment, financial frictions, financial transmission, Spain

Codis JEL:

E32, E44, G21

Àrea de Recerca:

Macroeconomia i Economia Internacional

Publicat a:

American Economic Review, 111(3), 2021, 1013-1053

Comentari:

Forthcoming in American Economic Review

Descarregar el paper en format PDF (1.819 Kb)