What is it about?
This paper evaluates the role of monetary liquidity on housing prices. It uses a demand model which includes the main determinants (demographics, income, mortgage flows, interest rates) to control the house prices responses of Monetary Liquidity changes. The model is applied to UK and Spanish housing markets
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Why is it important?
This is the first evidence finding the direct reactions of housing prices to liquidity in a proper housing market as well as testing the differences between the UK and Spanish markets
Perspectives
Housing prices become increasingly relevant for Policy purposes since the Great Recession occurs but the analysis of housing prices has been done out of the housing market equilibrium in most of the contributions. This paper frames the analysis inside the precise environment with consistent results.
Professor Paloma Taltavull de La Paz
University of Alicante
Read the Original
This page is a summary of: The sources of house price change: identifying liquidity shocks to the housing market, Journal of European Real Estate Research, May 2016, Emerald,
DOI: 10.1108/jerer-11-2015-0041.
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