Housing, credit, and real activity cycles: Characteristics and comovement

On the macroeconomic determinants of the housing market in Greece: a VECM approach

“…On the contrary, when the interest rates are on the decrease, e.g. because of money supply growth, then the user cost of housing is going down and the demand for housing is rising (Apergis and Rezitis, 2003;Igan et al, 2011). Andrews (2010) argues that the correlation between house prices and the loan interest rate is negative and depends on the degree of competition in the banking sector.…”

Short and medium term financial-real cycles: An empirical assessment

“…Our findings are not inconsistent with the claim that the level of household debt affects the depth of downturns, but question whether household debt is a key variable in the business cycle mechanism. Given the empirical finding of an important role of house prices during the business cycle (Igan et al, 2011), we conjecture that there is a more complex interaction between household debt, house prices, and real activity that may generate business cycle dynamics. Future research could aim to integrate such a mechanism into our framework.…”

Can a Multinational Company Create a Real Estate “Bubble” at the Local Level? The Case of Fiat and City of Kragujevac

“…Construction industry influences the economy of each country because it has a considerable contribution to the added value and it employs a big number of workers. In the majority of developed economies in the world, the price cycles most often match the loan and business cycles (Igan et al, 2011). This indicates that fluctuations in the construction and prices of real estate create waves in the economy through the influence on spending and loaning.…”