(1) Household debt and house prices do not cause systemic risk in a developed country like Norway (Table 1). (2) House prices grow equally across different Norwegian cities (Table 2). Table 1: Table 2: Mortgages/Total Regional House Prices (2003=100) Household Debt House Ratio (% Prices/Disposable Loans (%) Disposable | Income Income) Debt Per Сapita (Ages 15- 74) Oslo Kristiansand | Stavanger 2000 130 130 2009 180 140 42 150 175 200 200 230 2012 160 43 200 195 250 2018 47 300 220 260
(1) Household debt and house prices do not cause systemic risk in a developed country like Norway (Table 1). (2) House prices grow equally across different Norwegian cities (Table 2). Table 1: Table 2: Mortgages/Total Regional House Prices (2003=100) Household Debt House Ratio (% Prices/Disposable Loans (%) Disposable | Income Income) Debt Per Сapita (Ages 15- 74) Oslo Kristiansand | Stavanger 2000 130 130 2009 180 140 42 150 175 200 200 230 2012 160 43 200 195 250 2018 47 300 220 260
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Could you please answer 2nd question?
Transcribed Image Text:Answer your friend who has following statements and questions:
(1) Household debt and house prices do not cause systemic risk in a developed country like Norway
(Table 1).
(2) House prices grow equally across different Norwegian cities (Table 2).
Table 1:
Table 2:
Mortgages/Total Regional House Prices
(2003=100)
Household Debt
House
Ratio (% Prices/Disposable Loans (%)
Disposable | Income
Income)
Debt
Per
Сapita (Ages 15-
74)
Oslo
Kristiansand | Stavanger
2000
130
130
140
2009
180
42
150
175
200
200
230
200
300
2012
160
43
195
250
2018
47
220
260
(3) House price growth is being totally determined by the cultural homeownership of Norwegians
rather than the Norwegian tax system.
(4) Household debt does not theoretically cause a problem in Norway since many households have
also assets to pay off the debts.
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