Econometric-model of building society behaviour in Ireland

Abstract

This paper presents a quarterly model of Irish building society behaviour over the period 1973-78. The model attempts to explain the major variables in the incremental balance sheet with special emphasis on the relationships between mortgage supply, interest rates and the growth of building society liabilities. An important implication of the results is that variations in mortgage supply are substantially influenced by the public's desire to accumulate shares and deposits which appears to be more responsive to real income growth than to changes in relative interest rates.