News-Driven Housing Booms: Spain Versus Germany
نویسندگان
چکیده
Abstract We investigate how the economy responds to anticipated (news) shocks future investment decisions. Using structural vector autoregressions (SVARs), we show that news about relative price of residential explains a high fraction variance output, aggregate and for Spain. In contrast, Germany it is on business structures equipment explain higher consumption non-residential investment. confront identified shock with other provide evidence our interpretation valid. Then, address empirical findings, propose stylized two-sector model willingness substitute current in housing, or equipment. The combines wealth effect driven by expectation rising house prices, reduced-form friction labor reallocation. find calibrated Spain displays response stimulate investment, whereas those enhance structures. results highlight propagation mechanism which consistent housing booms their absence Germany. Such complements view relying combination monetary, financial supply demand, surprise shocks.
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ژورنال
عنوان ژورنال: B E Journal of Macroeconomics
سال: 2022
ISSN: ['2194-6116', '1935-1690']
DOI: https://doi.org/10.1515/bejm-2021-0116