Money and Housing: Evidence for the Euro Area and the Us

By C. Greiber, Ralph Setzer. Social Science Research Network, 2007

207 citations recorded by the source corpus.

This paper examines the relation between money and housing variables in the euro area and in the US. Our empirical model is based on a standard money demand relation which is augmented by housing market variables. In doing so, co-integrated money demand relationships can be established for both the euro area and the US. Furthermore, we find evidence for asset inflation channels, that is, liquidity fuels housing market developments.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/5a195cd77ca42493ba8df336b9a9a6e7a75d8ead

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. W. Buiter
2. A. Belke
3. Panagiotis Printzis
4. Ralph Setzer
5. Theodore Panagiotidis
6. W. Orth
7. António Afonso

In Finance

1. W. Buiter
2. A. Belke
3. Panagiotis Printzis
4. Theodore Panagiotidis

Citations in the corpus

• Heterogeneity in Money Holdings Across Euro Area Countries: The Role of Housing (2011, unknown): “A number of studies extend conventional money demand functions by including housing or financial wealth variables (Boone and van den Noord, 2008; Greiber and Setzer, 2007; de Santis et al., 2008; de Bondt, 2009; Beyer, 2009).”
• On the macroeconomic determinants of the housing market in Greece: a VECM approach (2016, background): “Money and housing – evidence for the euro area and the US Greiber and Setzer (2007) Euro area 1981-2006 USA 1986-2006 Quarterly data for Μ3, GDP, housing prices, interest rates.”
• Liquidity and the Dynamic Pattern of Asset Price Adjustment: A Global View (2010, background): “Many observers interpret the sequence of increases of asset prices as the result of liquidity spill-overs to certain asset markets (Adalid and Detken, 2007, Greiber and Setzer, 2007).”
• House Prices, Money, Credit and the Macroeconomy (2008, unknown): “…value of the stock of housing assets, triggering a portfolio rebalancing which will also involve an adjustment in the demand for monetary assets (Greiber and Setzer, 2007).2 A link between credit and house prices may arise via housing wealth and collateral effects on credit demand and credit…”
• Central banks and financial crises (2008, background): “F r uson (2005), Adalid and Detken (2007) and Greiber and Setzer (2007)).”