International House Prices and Macroeconomic Fluctuations

Download or read book International House Prices and Macroeconomic Fluctuations written by Andrea Beltratti and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper investigates linkages between general macroeconomic conditions and the housing market for the G-7 area. Among the key results of the paper, it is found that the US are an important source of global fluctuations not only for real activity, nominal variables and stock prices, but also for housing prices. Yet, also regional factors may be relevant to account for house prices dynamics. Secondly, albeit distinct driving forces for real activity and financial factors can be pointed out, sizeable global interactions can be found. In particular, global supply-side shocks are found to be important determinant of G-7 house prices fluctuations. The linkage between housing prices and macroeconomic developments is however bidirectional, since evidence of significant wealth effects can be found, with investment showing in general a stronger reaction than consumption and output.