Quotation Fischer, Manfred M., Huber, Florian, Pfarrhofer, Michael, Staufer-Steinnocher, Petra. 2021. The Dynamic Impact of Monetary Policy on Regional Housing Prices in the United States. Real Estate Economics. 49 (4), 1039-1068.




This article uses a factor‐augmented vector autoregressive model to examine the impact of monetary policy shocks on housing prices. To simultaneously estimate the model parameters and unobserved factors, we rely on Bayesian estimation and inference. Policy shocks are identified using high‐frequency surprises around policy announcements as an external instrument. Impulse response functions reveal differences in regional housing price responses, which in some cases are substantial. The heterogeneity in policy responses is found to be significantly related to local regulatory environments and housing supply elasticities. Moreover, housing prices responses tend to be similar within states and adjacent regions in neighboring states.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Real Estate Economics
Citation Index SSCI
WU-Journal-Rating new VW-C, WH-B
Language English
Title The Dynamic Impact of Monetary Policy on Regional Housing Prices in the United States
Volume 49
Number 4
Year 2021
Page from 1039
Page to 1068
URL https://onlinelibrary.wiley.com/doi/full/10.1111/1540-6229.12274
DOI https://doi.org/10.1111/1540-6229.12274
Open Access Y
Open Access Link https://onlinelibrary.wiley.com/doi/epdf/10.1111/1540-6229.12274


Fischer, Manfred M. (Details)
Huber, Florian (Former researcher)
Pfarrhofer, Michael (Former researcher)
Staufer-Steinnocher, Petra (Details)
Institute for Economic Geography and GIScience IN (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
1807 Economic geography (Details)
1810 Geographic Information Systems (GIS) (Details)
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