Macroeconomic Aspects of Housing

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)12_Chapter in an edited book (Author)

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Detail(s)

Original languageEnglish
Title of host publicationOxford Research Encyclopedia of Economics and Finance
EditorsJonathan H. Hamilton, Avinash Dixit, Sebastian Edwards, Kenneth Judd
PublisherOxford University Press
Publication statusPublished - Aug 2019

Publication series

NameOxford Research Encyclopedias
PublisherOxford University Press

Abstract

This article summarizes research on the macroeconomic aspects of the housing market. In terms of the macroeconomic stylized facts, this article demonstrates that with respect to business cycle frequency, there was a general decrease in the association between macroeconomic variables (MV), such as the real GDP and inflation rate, and housing market variables (HMV), such as the housing price and the vacancy rate, following the global financial crisis (GFC). However, there are macro-finance variables, such as different interest rate spreads, that exhibited a strong association with the HMV following the GFC. For the medium-term business cycle frequency, some but not all patterns prevail. These “new stylized facts” suggest that a reconsideration and refinement of existing “macro-housing” theories would be appropriate. This article also provides a review of the corresponding academic literature, which may enhance our understanding of the evolving macro-housing–finance linkage.

Research Area(s)

  • stylized facts, macro-housing–finance linkage, global financial crisis, business cycle frequency, housing market variables

Citation Format(s)

Macroeconomic Aspects of Housing. / Leung, Charles Ka Yui; Ng, Cho Yiu Joe.

Oxford Research Encyclopedia of Economics and Finance. ed. / Jonathan H. Hamilton; Avinash Dixit; Sebastian Edwards; Kenneth Judd. Oxford University Press, 2019. (Oxford Research Encyclopedias).

Research output: Chapters, Conference Papers, Creative and Literary Works (RGC: 12, 32, 41, 45)12_Chapter in an edited book (Author)