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International Area Studies Review
[ Article ]
International Area Studies Review - Vol. 27, No. 4, pp.384-400
ISSN: 2233-8659 (Print)
Print publication date 31 Dec 2024
DOI: https://doi.org/10.69473/iasr.2024.27.4.384

Ageing, Credit and House Prices: Comparison between OECD and Non-OECD Countries

Moosang Cho ; Jongha Lee*
Research Professor, The Institute of Knowledge Management, Chosun University, Republic of Korea
Professor, Department of International Trade, Chosun University, Republic of Korea

Correspondence to: *Email: jhlee.eco@gmail.com

Abstract

Since Takáts (2012), which shows that ageing has a negative impact on house prices, numerous papers have been published that either support or do not support this conclusion. We examine the relationship between population ageing and house prices by focusing on the role of credit availability using cross-country unbalanced panel data for the period 1981-2020 for 59 countries. We find that, unlikely to Takáts (2012), the negative effect of ageing on house prices is not confirmed when credit availability is not taken into account, but also could be offset by an increase in the availability of credit. These results suggest that the impact of population ageing may have different effects on house prices depending on the availability of credit in the market. These results suggest that the demographic headwind by population ageing has not realized yet.

Keywords:

Population ageing, Financial development, House prices

Acknowledgments

This paper is a revised and supplemented version based on Chapter 2 of the first author’s Ph.D. thesis, with expanding the number of countries, period, and scope of the empirical analysis.

AI Acknowledgment

Generative AI or AI-assisted technologies were not used in any way to prepare, write, or complete essential authoring tasks in this manuscript.

Conflicting interests

The author(s) declare that there is no conflict of interest (If there are conflicts of interest, list them in detail, specifying the nature of the conflict and the involved parties).

Funding

This study was supported by research fund (team research project) from Chosun University 2020.

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