Heterogeneous Monetary Policy Transmission in the US Housing Market

  • Maria Christidou University of Macedonia
  • Panagiotis Theodore Konstantinou Athens University of Economics and Business and Hellenic Open University
  • Costas Roumanias Athens University of Economics and Business

Abstract

We assess the effects of monetary policy on real house prices and housing investment across the US states during the period 1983-2008. We find that an expansionary monetary shock generates higher housing investment and house prices at the national level. At the state level, however the responses of housing investment and house prices differ from the nation-wide responses. We relate this heterogeneity to various observable factors such as property tax rates, howeownership, income inequality, poverty and demographic factors. All these factors are crucial in explaining the heterogeneity of the state-level responses.

Author Biographies

Maria Christidou, University of Macedonia
Panagiotis Theodore Konstantinou, Athens University of Economics and Business and Hellenic Open University

Assistant Professor.

Department of International and European Economic Studies

Athens University of Economics and Business

Costas Roumanias, Athens University of Economics and Business
Published
2018-01-07
Section
Articles