Tuesday, 4 September 2018

Manufacturing decline reduces house price volatility

a column by Isaiah Hull, Conny Olovsson, Karl Walentin and Andreas Westermark for VOX: CEPR’s Policy Portal

Large movements in house prices can have broad and substantial effects on the macroeconomy.

This column uses property-level data to identify the key drivers of house price volatility and decompose this into national, regional, local, and idiosyncratic components. There is substantial cross-sectional variation in house price risk, with higher firm concentration, employment volatility, and manufacturing share of output and employment associated with greater risk.

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