Abstract
We develop a novel mechanism that captures the negative co-movements between housing prices and investment in China by incorporating the crowding out channel into a NK-DSGE model. Through this channel, a credit-driven housing boom stimulates constrained commercial banks to allocate more credit to the unproductive household sector instead of entrepreneur sector, crowding out corporate investment.
Full Text 
Sign-in/Register to access full text options
Sign-in/Register to access full text options 
Published version (
Free)
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
