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dc.contributor.authorAastveit, Knut Are
dc.contributor.authorAnundsen, André K.
dc.date.accessioned2018-01-03T10:18:19Z
dc.date.available2018-01-03T10:18:19Z
dc.date.issued2017-12
dc.identifier.issn1892-2198
dc.identifier.urihttp://hdl.handle.net/11250/2474301
dc.description.abstractThe responsiveness of house prices to monetary policy shocks depends both on the nature of the shock – expansionary versus contractionary – and on city-specific housing supply elasticities. We test and find supporting evidence for the hypothe- sis that expansionary monetary policy shocks have a larger impact on house prices when supply elasticities are low on 263 US metropolitan areas. We also test whether contractionary shocks are orthogonal to supply elasticities, as implied by downward rigidity of housing supply, and find supporting evidence. A final theoretical con- jecture is that contractionary shocks should have a greater impact on house prices than expansionary shocks, as long as supply is not perfectly inelastic. For areas with high housing supply elasticity, our results are in line with this conjecture. However, for areas with an inelastic housing supply, we find that expansionary shocks have a greater impact on house prices than contractionary shocks. We provide evidence that this is related to a momentum effect that is more pronounced when house prices are increasing than when they are falling.nb_NO
dc.language.isoengnb_NO
dc.publisherBI Norwegian Business School, Centre for Applied Macro- and Petroleum Economicsnb_NO
dc.relation.ispartofseriesCAMP Working Paper Series;7
dc.subjectHouse pricesnb_NO
dc.subjectHeterogeneitynb_NO
dc.subjectMonetary policynb_NO
dc.subjectNon-linearitynb_NO
dc.subjectSupply elasticitiesnb_NO
dc.titleAsymmetric effects of monetary policy in regional housing marketsnb_NO
dc.typeWorking papernb_NO
dc.source.pagenumber47nb_NO


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