Skip to main content

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

Buy Article:

$47.50 plus tax (Refund Policy)

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.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
No Metrics

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

Document Type: Research Article

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

Publication date: 01 June 2012

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
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