Skip to main content

Consumption and housing wealth breakdown of the effect of a rise in interest rates

Buy Article:

$53.17 plus tax (Refund Policy)

Abstract:

In this article the effect on consumption of a fall in housing wealth and housing prices, resulting from an increase in interest rates is estimated. With the help of a dynamic multiequation, macroeconomic model, the consumer response function is broken down into two parts: a direct response related to a rise in the cost of credit and another indirect one related to the deterioration of the property market. Estimation of the theoretical model is done by means of a Vectorial Error-Correction (VEC) model.

Keywords: C32; C51; E21; housing prices; monetary policy; vectorial error-correction model; wealth effect

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036846.2011.558484

Affiliations: 1: Centro Universitario Cardenal Cisneros, C/General Diaz Porlier 5828006 Madrid, Spain 2: CUNEF, C/ Serrano Anguita8 - 28004 Madrid, Spain

Publication date: June 1, 2012

More about this publication?
routledg/raef/2012/00000044/00000016/art00008
dcterms_title,dcterms_description,pub_keyword
6
5
20
40
5

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more