ECB paper presents new approach to modelling LTV caps

money-houses

A working paper published by the European Central Bank presents a new approach to modelling loan-to-value (LTV) caps and other macro-prudential measures.

In An agent-based model for the assessment of LTV caps, Dimitrios Laliotis et al say their model reveals a “subprime” segment in the eurozone’s housing market.

The authors map how LTV caps affect the behaviour of three different types of agent: home property sellers; buyers; and banks. There is a market-clearing mechanism consisting of

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: