On the Long-Term Effect of Recent Housing Policies in Korea
- 주제(키워드) Housing Policies , House Prices , Household Debt , Heterogeneous Agents
- 주제(기타) Economics
- 설명문(일반) [Seok, Byoung Hoon] Ewha Womans Univ, Dept Econ, Seoul, South Korea; [You, Hye Mi] Hanyang Univ, Coll Econ & Finance, Seoul, South Korea
- 등재 SSCI, SCOPUS, KCI등재
- 발행기관 KOREAN ECONOMIC ASSOCIATION
- 발행년도 2021
- 총서유형 Journal
- URI http://www.dcollection.net/handler/ewha/000000182274
- 본문언어 영어
- Published As http://dx.doi.org/10.22841/kerdoi.2021.37.2.001
초록/요약
This paper explores the long-term effect of recent housing policies in Korea. Using a two sector general equilibrium model with heterogeneous agents, we conduct three policy experiments: i) a reduction in the loan-to-value (LTV) ratio; ii) an increase in the house acquisition tax rate; iii) an increase in the property tax rate. We find that all three policies increase the relative price of housing structures in the long run, yet their quantitative effect is small, and that the reduced LTV ratio is effective in reducing the household debt. Heterogeneous responses to these policies depending on household wealth are crucial in these results.
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