| The Journal of Real Estate Finance and Economics | |
| Volume 18, Issue 1, Article 7 (Abstract) | |
| Title: | Residential Construction and Credit Market Imperfection |
| Author: | Thomas Sai-Fan Chan |
| Abstract: | Using the asset market equilibrium approach, the effects of Financial Regulations, Reform, Recovery, and Enforcement Act (1989), the new housing selling time, and the commercial paper-Treasury Bill spread, through the credit markets, on total and speculative single-family housing construction are investigated. A new speculative single-family housing starts series is developed for this analysis. The credit-market factors appear to affect both the cost of construction loans and the price elasticity of single- family housing construction. These effects are especially strong on speculative housing construction. |
| Keywords: | Residential Construction, Speculative Housing Construction, Liquidity Constraints |