The first two methods seem appropriate for the measuring of the “cost of living,” as they cover the consumption of the service produced by housing. The payments method reflects the actual outlay for owning a dwelling for shelter purposes; it can be regarded as a simplified version of the user cost method. The user cost method, as adopted by Canada and Sweden, includes the opportunity cost of ow...

Why is this topic of house price indexes important? The Global Financial Crisis has several causes but a main cause was a housing bubble in the U.S. which led banks to make mortgage loans that were based on the assumption that house prices were not rising unusually quickly. If accurate regional house price indexes for the U.S. would have been widely available to the public, it is unlikely that ...

We come from our family’s house to live in our husband’s house. If we mention our name in this house, they say, “Oh, that is another family”. Yet when it comes to working, they say, “What you earn is ours, because you are in this family’s house”, or “because you are working on this family’s land. Let the land be registered in our names, so that we will not always feel like we are in someone els...

the purpose of this research was identifying socio-economic characteristics affected on respondents’ participation in contract farming. the survey was conducted using structured questionnaire in populous states namely kedah, kelantan, terengganu, pahang, perak, selangor and johor in peninsular malaysia. a total of one-hundred and sixty seven ffv farmers were randomly selected and personally int...

We examine the effect of house price appreciation on bank loan portfolios during the 1996—2006 period. While most previous research in this area has concentrated on loan demand effects, we evaluate how house prices affect a bank’s credit supply. Controlling for possible simultaneity between house prices and bank loan portfolio growth, we find that banks affected by greater house price appreciat...

mortgage debt market and thereby increase the losses lenders experience on loan defaults. The popularity of nontraditional mortgage loans, such as interest-only loans and adjustable-rate loans that permit negative amortization (“option ARMS”), raises additional concern about default risk because such loans expose borrowers to more interest-rate and house-price risk than traditional fixed-rate, ...

The purpose of this research was identifying socio-economic characteristics affected on respondents’ participation in contract farming. The survey was conducted using structured questionnaire in populous states namely Kedah, Kelantan, Terengganu, Pahang, Perak, Selangor and Johor in Peninsular Malaysia. A total of one-hundred and sixty seven FFV farmers were randomly selected and personally int...

We develop a life-cycle model to study the effects of house price changes on household consumption and welfare. The model explicitly incorporates the dual feature of housing as both a consumption good and an investment asset and allows for costly adjustments in housing and mortgage positions. Our analysis indicates that although house price changes have small aggregate effects, their consumptio...

Bank of Canada working papers are theoretical or empirical works-in-progress on subjects in economics and finance. The views expressed in this paper are those of the authors. No responsibility for them should be attributed to the Bank of Canada. ii Acknowledgements We are very grateful for comments received from seminar participants at the Bank of Canada and the Joint Central Bank Conference: B...