Research
Research
Publications
Fiscal Interventions as Housing-Related Macroprudential Tools: A Comprehensive Analysis, Oxford Economic Papers, 2026
Abstract: This article investigates the efficacy of raising tax rates on housing property and reducing mortgage repayment deductibility as macroprudential instruments to curb household indebtedness. We analyze the output and welfare implications of these measures, with a particular emphasis on the role of revenue allocation. Utilizing a dynamic general equilibrium framework, we find that while both instruments successfully reduce house prices and credit, raising tax rates on housing property induces more significant price contractions and higher short-run output costs. In contrast, reducing mortgage repayment deductibility is more targeted, effectively lowering mortgage default rates and minimizing collateral erosion. Welfare outcomes depend crucially on fiscal recycling: allocating revenues to public investment or debt reduction primarily benefits patient households, whereas directing revenues toward transfer payments mitigates the welfare losses of credit-constrained borrowers and maximizes benefits for renters by alleviating liquidity constraints.
Working Papers
Robust Design of Countercyclical Capital Buffer Rules (with Dominik Hecker, Margarita Rubio and Fabio Verona), Bank of Finland Research Discussion Paper No. 9/2024. Under review.
Population Aging and Financial Stability: An Empirical Analysis, BOK Working Paper No. 2025-13. Under review.
Foreign Investor Trading and Spillovers to Local-Currency Bond Markets in SEACEN Economies: A Case Study Approach (SEACEN Collaborative Research Project)
Work in Progress
Liquidity Constraints and the Consumption Effects of Recurrent Property Taxes (with Atsuyoshi Morozumi)
Assessing the Empirical Fit of Macroprudential DSGE Models (with Dominik Hecker, Margarita Rubio and Fabio Verona)
Debt Finance Bias and Macroprudential Policy
Policy Papers
생산 부문으로의 자금흐름 전환과 성장 활력 (황인도, 김우석 공저), 2025, BOK 이슈노트 제2025-37호.
한국은행 경제전망보고서(2025.5) 중장기 심층연구: 초고령화에 따른 통화정책 여건 변화와 시사점 (이재원, 황인도, 황설웅, 곽보름, 이예일, 김우석 공저)
Impact of Super-Aging on the Monetary Policy Environment: Implications for Korea (with Lee, Jae Won, Hwang, In Do, Hwang, Seolwoong, Kwak, Boreum, Lee, Yeil and Kim, Wooseok) Bank of Korea "Chapter 3 in Korea Economic Outlook (May 2025)".
Implementing Loan-to-Value and Debt-to-Income Ratios: Learning from Korea’s Experiences (with Y. M. Kim and J.Y. Lee), 2015, mimeo.