REP Research Seminar - Presenting in person - Dr Yushi Peng, Tilburg University - Title: Mortgage Regulation in Illiquid Housing Markets

These are primarily internal Seminars but if you are interested in attending one of our Seminars or for further information, please contact: REPSchoolOffice@henley.ac.uk.

Bio: Yushi Peng is an Assistant Professor in the Department of Finance at Tilburg University. She received her Ph.D. in Finance from the University of Zurich and the Swiss Finance Institute. Prior to joining Tilburg, she was an Assistant Professor at the College of Finance and Statistics at Hunan University and a Visiting Fellow in the Department of Economics at the London School of Economics.

Abstract:

This paper investigates how mortgage regulation affects housing market outcomes and household welfare in illiquid housing markets. Using unique transaction data from China, I estimate a structural model of home listing, selling, and purchasing in secondary housing markets, capturing liquidity provision from buyers and sellers. Through counterfactual experiments, I quantify the impact of marginal changes in mortgage interest rates and down payment requirements over varying time horizons on housing market microstructure and house prices. Furthermore, this paper analyzes the distributional effects of these changes and examines the role of market frictions in influencing the effectiveness of mortgage regulations and household welfare.