The Interaction between Mortgage Financing and Housing Prices in Greece

Consumer credit in an era of financial liberalisation: an overreaction to repressed demand?

“…We also add trend terms to take into account structural changes in credit demand or supply due to liberalisation. This is consistent with the approach usually followed in the empirical literature when modelling similar changes, where it is assumed that a trend term may proxy these effects, or for example the impact of financial innovation (see for example Arrau et al, 1995;Kakes, 2000;Hulsewig et al, 2004;Brissimis and Vlassopoulos, 2009). Another interesting example, that we not follow here, is the approach taken by Arrau and De Gregorio (1993) who use a sample for Chile and Mexico and assume a time-varying constant term in the long-run money demand relationship, modelled as a random walk process.…”

“…Other studies incorporate time trends in the long-run relationship to proxy for the effects of credit liberalisation or financial innovation (e.g. Arrau et al, 1995;Kakes, 2000;Hulsewig et al, 2004;Brissimis and Vlassopoulos, 2009). Alternative approaches 1 The Bernanke-Blinder model assumes that market frictions and imperfect information cause bonds and loans to be imperfect substitutes, both from the perspective of banks (which consider these two alternative investment choices) and from the perspective of firms (which focus their financing choices on banks and markets, as alternative sources of financing).…”

“…For example, Fitzer and Reiss (2008) find a corresponding coefficient of -0.060 for loans to households in the Austrian economy, which they consider to be high. Regarding the Greek loan market, Brissimis and Vlassopoulos (2009) also estimate the interest semielasticity for a mortgage loan demand curve at -0.039. Regarding the coefficient on income, the same authors find an almost unit elasticity of loans demanded with respect to income.…”

Current Account Determinants and External Sustainability in Periods of Structural Change

“…A recent study by Brissimis and Vlassopoulos (2009) shows that mortgage loans have a unitary long-run elasticity with respect to GDP. note of caution is required.…”

The Banking Sector and the Great Depression in Bulgaria, 1924 - 1938: Interlocking and Financial Sector Profitability

“…More than 40 years ago Gerschenkron proposed his thesis of economic development in relative backwardness, where the state acted as a substitute to supposed prerequisites of economic growth58 . Concentrated and mixed banking sector, where banks were involved in investment, credit provision and commercial practices, is central to such mode of development.…”