Would a ‘Modest Policy Intervention’ Have Prevented the U.S. Housing Bubble?

Benati, Luca (April 2016). Would a ‘Modest Policy Intervention’ Have Prevented the U.S. Housing Bubble? (Discussion Papers 16-09). Bern: Department of Economics

[img]
Preview
Text
dp1609.pdf - Published Version
Available under License Creative Commons: Attribution (CC-BY).

Download (1MB) | Preview

A ‘modest policy intervention’ in which the Federal Funds rate had reacted, weakly but systematically, to the ratio between house prices and rents would have prevented the building up of the housing bubble which pre-dated the Great Recession, at a small cost in terms of real activity. Monetary policy shocks, which I identify by combining zero and sign restrictions, cause strongly statistically significant decreases in real house prices, housing starts, hours
worked in construction, and loans to the real estate sector, and a statistically significant temporary increase in the real rent.

Item Type:

Working Paper

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Economics

UniBE Contributor:

Benati, Luca

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

Series:

Discussion Papers

Publisher:

Department of Economics

Language:

English

Submitter:

Lars Tschannen

Date Deposited:

28 Dec 2020 08:51

Last Modified:

28 Dec 2020 08:51

BORIS DOI:

10.48350/145834

URI:

https://boris.unibe.ch/id/eprint/145834

Actions (login required)

Edit item Edit item
Provide Feedback