https://macropaperwarehouse.com/authors/emmanuel-de-veirman/Emmanuel De VeirmanHugo -- gohugo.ioen-ushttps://macropaperwarehouse.com/papers/heterogeneity-and-the-macro-economic-effects-of-changes-in-loan-to-value-limits/https://macropaperwarehouse.com/papers/heterogeneity-and-the-macro-economic-effects-of-changes-in-loan-to-value-limits/<p><strong>Research Question</strong></p> <p>De Veirman and de Jong develop a new approach to estimating the macroeconomic effects of changes in regulatory loan-to-value (LTV) limits on mortgage loans. The central questions are: (1) how do changes in an LTV cap translate into changes in the average LTV and, through that channel, into house prices and real output; and (2) how do heterogeneity in the cross-sectional LTV distribution, non-linearity, and asymmetry shape those effects?</p>