Via Carol W via rwer, from the Bank for International Settlements:
Can non-interest rate policies stabilise housing markets? Evidence from a panel of 57 economies
by Kenneth N Kuttner and Ilhyock Shim
Working Papers No 433
November 2013
Using data from 57 countries spanning more than three decades, this paper investigates the effectiveness of nine non-interest rate policy tools, including macroprudential measures, in stabilising house prices and housing credit.
In conventional panel regressions, housing credit growth is significantly affected by changes in the maximum debt-service-to-income (DSTI) ratio, the maximum loan-to-value ratio, limits on exposure to the housing sector and housing-related taxes. But only the DSTI ratio limit has a significant effect on housing credit growth when we use mean group and panel event study methods.
Among the policies considered, a change in housing-related taxes is the only policy tool with a discernible impact on house price appreciation.
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