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A natural starting point for analysing the link between fascination premiums and residence selling prices will be the venerable user Expense model which, as argued by Himmelberg, Mayer and Sinai (2005), provides a helpful benchmark for gauging the significance of financial fundamentals.
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Our regression specification for housing credit expansion is analogous towards the housing selling price regression, but substitutes housing credit growth for housing price advancement: exactly where Δln
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