Macroeconomic Aspects of Housing

2019 ◽  
Author(s):  
Charles Ka Yui Leung ◽  
Cho Yiu Joe Ng
Keyword(s):  
Business Cycle ◽  
Housing Market ◽  
Global Financial Crisis ◽  
Strong Association ◽  
Housing Price ◽  
Stylized Facts ◽  
Cycle Frequency ◽  
Market Variables ◽  
The Global Financial Crisis ◽  
Macro Finance

This article summarizes research on the macroeconomic aspects of the housing market. In terms of the macroeconomic stylized facts, this article demonstrates that with respect to business cycle frequency, there was a general decrease in the association between macroeconomic variables (MV), such as the real GDP and inflation rate, and housing market variables (HMV), such as the housing price and the vacancy rate, following the global financial crisis (GFC). However, there are macro-finance variables, such as different interest rate spreads, that exhibited a strong association with the HMV following the GFC. For the medium-term business cycle frequency, some but not all patterns prevail. These “new stylized facts” suggest that a reconsideration and refinement of existing “macro-housing” theories would be appropriate. This article also provides a review of the corresponding academic literature, which may enhance our understanding of the evolving macro-housing–finance linkage.

Conclusion

2018 ◽  
Author(s):  
Nauro F. Campos ◽  
Paul De Grauwe ◽  
Yuemei Ji
Keyword(s):  
Financial Crisis ◽  
Business Cycle ◽  
Sovereign Debt ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Structural Reform ◽  
Structural Reforms ◽  
Sovereign Debt Crisis ◽  
The Business Cycle ◽  
The Global Financial Crisis

Structural reform policies move like the business cycle. There are moments when these are implemented with great fervour and others when they are put on the back burner or even dismantled. After the global financial crisis, and in particular the sovereign debt crisis in Europe, many countries were forced by creditor countries or were self-imposed to apply deep reforms to their product markets and especially to their labour markets. Now that Europe is recovering, the pressure to implement structural reforms has abated....

Sun, wind, rain and the sewer: outward form opportunities in a degraded landscape

2009 ◽  
Vol 13 (3-4) ◽  
pp. 285-294
Author(s):  
Timothy Stenson
Keyword(s):  
Carbon Dioxide ◽  
Financial Crisis ◽  
Housing Market ◽  
Global Financial Crisis ◽  
Good News ◽  
The Us ◽  
The Usa ◽  
And Performance ◽  
The Global Financial Crisis

The US housing market is infamous on at least two counts: implicated in the global financial crisis and notorious for its unsustainable consumption of resources and consequent discharge of carbon dioxide. Lately anything like good news regarding housing in the USA is scarce. However, the pause resulting from the collapse of the market, and increasing concern regarding building's agency in the environment, combine to provide an opportunity to reconsider the form and performance of housing. This may yet create an opening for design.

scholarly journals UNDERSTANDING REGIONAL ECONOMIC PERFORMANCE AND RESILIENCE IN THE UK: TRENDS SINCE THE GLOBAL FINANCIAL CRISIS

2020 ◽  
Vol 253 ◽  
pp. R18-R28
Author(s):  
Marianne Sensier ◽  
Fiona Devine
Keyword(s):  
Financial Crisis ◽  
Business Cycle ◽  
Global Financial Crisis ◽  
Peak Level ◽  
Economic Resilience ◽  
Employment Level ◽  
The Business Cycle ◽  
Regional Economic Performance ◽  
The Global Financial Crisis ◽  
The Uk

We investigate economic resilience of UK regions before, during and after the 2007/8 global financial crisis. We date business cycle turning points in real output, employment and productivity to assess the resilience dimensions of resistance, recovery and renewal and rank the economic resilience of regions in a resilience scorecard. Our empirical results reveal that the business cycle in productivity has not returned to its pre-recession peak level for Yorkshire and the Humber and the employment level has not recovered in Scotland. The resilience scorecard ranks the South East as the most resilient region with Northern Ireland the least resilient.

The Determinants of Corporate CDS Spreads: Do Equity Liquidity and Jump Matter?

2014 ◽  
Vol 22 (3) ◽  
pp. 565-595
Author(s):  
Yuen Jung Park ◽  
Jungmu Kim
Keyword(s):  
Time Series ◽  
Stock Return ◽  
Global Financial Crisis ◽  
Explanatory Power ◽  
Firm Level ◽  
Cross Sectional ◽  
Stock Return Volatility ◽  
The Cross ◽  
Market Variables ◽  
The Global Financial Crisis

This paper investigates whether equity liquidity and stock return jump are important determinants for the Korean corporate CDS spreads. The previous studies mainly have examined the determinants of CDS spread time series levels, whereas this study focuses on the determinants of changes or differences of CDS spread time series as well as the effecting factors of cross-sectional variations. Using monthly averaged CDS quotes for 29 firms from Jan. 2005 to Nov. 2012, we first demonstrate that the explanatory power for CDS spread changes is improved to about 39% by adding both credit risk-related market variables and firm-level jump variables, contrary to the low explanatory power (approximately 21%) reported by the previous study. However, since the principle component analysis for residuals from the regression shows that a common risk factor exists, it is possible that additional important factor remains. In addition, we demonstrate that stock return volatility is a robust variable to explain the cross-sectional differences in CDS spreads. We also find that the equity liquidity is a robust and significant factor for the cross-sectional differences in CDS spreads after the global financial crisis period. The result implies that, after the recent crisis, investors more actively considered equity illiquidity costs when they hedged their CDS exposures by stocks.

Long-run drivers and integration in interprovincial Canadian housing price relations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vijay Kumar Vishwakarma
Keyword(s):  
Housing Market ◽  
Granger Causality ◽  
Global Financial Crisis ◽  
Housing Prices ◽  
Housing Price ◽  
Housing Markets ◽  
Content Type ◽  
Stochastic Trend ◽  
Long Run ◽  
Long Run Equilibrium

Purpose This paper aims to examine the integration of housing markets in Canada by examining housing price data (1999–2016) of six metropolitan areas in different provinces, namely, Calgary, Vancouver, Winnipeg, Toronto, Montreal and Halifax. The authors test for cointegration, driver cities of long-run relationships, long-run Granger causality and instantaneous causality in light of the global financial crisis (GFC) (2007–2008). Design/methodology/approach The authors use Johansen’s system cointegration approach with structural breaks. Moving average representation is used for common stochastic trend(s) analysis. Finally, the authors apply vector error correction model-based Granger causality and instantaneous causality. Findings Cities’ housing prices are in long-run equilibrium. Post-crisis Canadian housing markets became more integrated. The Calgary, Vancouver, Toronto and Montreal markets drive the Canadian housing market, leading all cities toward long-run equilibrium. Strong long-run Granger causality exists, but the authors observe no instantaneous causality. Price information takes time to disseminate, and long-run price adjustments play a significant role in causation. Practical implications The findings of cointegration increasing after the GFC and strong lead–lag can be used by investors to arbitrage and optimize portfolios. This can also help national and local policymakers in mitigating risk. Incorporating these findings can lead to better price forecasting. Originality/value This study presents many novelties for the Canadian housing market: it is the first to use repeat-sales regional pricing indices to test long-run behaviors, conduct common stochastic trend analyzes and present causality relations.

Using the Recurrent Event Binary States to Examine Economic Modeling Issues

2016 ◽  
Author(s):  
Don Harding ◽  
Adrian Pagan
Keyword(s):  
Business Cycle ◽  
Recurrent Events ◽  
Global Financial Crisis ◽  
Economic Models ◽  
Economic Modeling ◽  
Recurrent Event ◽  
Variance Decompositions ◽  
The Business Cycle ◽  
The Global Financial Crisis

This chapter looks at using the binary states describing the recurrent events to help in either constructing economic models of time series or evaluating the fit of such models. The chapter provides a general discussion of the issues that come up when using the binary states in regressions. It then turns to the analysis of complete economic models. In these it is very common to see variance decompositions computed and used to draw conclusions about which shocks are responsible for the recurrent events. It is shown that this methodology is flawed when it comes to shedding light on what causes the business cycle. What can be done is investigated in the chapter, which illustrates how to determine which shocks are important to a matching of the business cycle features discussed in Chapter 5. The discussion moves on to some economic models that have been constructed in the wake of the global financial crisis and which aim to highlight the role of financial shocks.

Book Reviews

2011 ◽  
Vol 49 (4) ◽  
pp. 1268-1269
Keyword(s):  
Business Cycles ◽  
Business Cycle ◽  
Emerging Markets ◽  
Global Financial Crisis ◽  
Emerging Market ◽  
International Business Cycles ◽  
Cornell University ◽  
Global Linkages ◽  
The Global Financial Crisis ◽  
World Economic Order

Jing Zhang of University of Michigan reviews “Emerging Markets: Resilience and Growth amid Global Turmoil” by M. Ayhan Kose and Eswar S. Prasad. The EconLit abstract of the reviewed work begins, “Examines changes in the nature of cyclical linkages between advanced economies and emerging market economies in order to analyze the resilience of the latter group to global economic and financial developments. Discusses changes in the world economic order--a roadmap; rising global linkages and international business cycles--what we know; setting the stage; shifting dynamics of global gross domestic product and growth; global trade linkages; global financial linkages; business cycle volatility; comovement of business cycles and financial markets; exploring the sources of business cycle comovement; macroeconomics of recessions and financial crises; emerging markets during the global financial crisis; the good and the ugly--emerging Asia and emerging Europe; and what explains the resilience of emerging markets. Kose is Assistant to the Director in the International Monetary Fund's Research Department. Prasad is Tolani Senior Professor of Trade Policy at Cornell University and New Century Chair in International Economics at the Brookings Institution. Index.”

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