Economic effects of a debt-to-income constraint in Finland : Evidence from Aino 3.0 model

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dc.contributor Bank of Finland
dc.contributor.author Kärkkäinen, Samu
dc.contributor.author Nyholm, Juho
dc.date.accessioned 2021-04-28T11:18:13Z
dc.date.available 2021-04-28T11:18:13Z
dc.date.issued 2021
dc.identifier.uri https://helda.helsinki.fi/bof/handle/123456789/17936
dc.description.abstract We analyze the economic effects of a debt-to-income constraint for the Finnish economy. Our benchmark is a DSGE model which is designed to capture the most prominent features of the Finnish economy and is calibrated using Finnish macroeconomic data. The baseline model incorporates a loan-to-value type of constraint for new mortgage loans. We study the effects of replacing this with a neutral DTI constraint, neutral meaning that the level of the constraint is set so that it would not alter the mortgage loans-to-GDP ratio in the long run. We find that the replacement would have only small long run effects on the economy, and it would potentially reduce the volatility of several variables associated with the housing markets.
dc.format.extent 31
dc.language.iso ENG
dc.rights https://helda.helsinki.fi/bof/copyright
dc.subject Suomen Pankki
dc.subject Aino 3.0
dc.subject DSGE
dc.subject mallit
dc.subject Suomi
dc.subject.other mortgage-to-GDP ratio
dc.subject.other debt-to-income constraint
dc.subject.other DTI
dc.title Economic effects of a debt-to-income constraint in Finland : Evidence from Aino 3.0 model
dc.type Paper
dc.identifier.urn URN:NBN:fi:bof-202104281200
dc.series.name BoF Economics Review
dc.series.year 2021
dc.series.number 1/2021
dc.series.sortingnumber 0001
dc.date.publication 28.4.2021
dc.subject.yso taloudelliset mallit
dc.subject.yso asuntolainat
dc.subject.yso bruttokansantuote
bof-internal.includedInCRIS 1
dc.type.okm D4

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