The Formation of House Price Expectations in Canada: Evidence from a Randomized Information Experiment

Marc-André Gosselin, Mikael Khan and Matthieu Verstraete

No 2019-24, Staff Analytical Notes from Bank of Canada

Abstract: We conduct a randomized information experiment leveraging the Canadian Survey of Consumer Expectations. We provide causal evidence that respondents revise both their short and medium term expectations of future house price growth in a way that is consistent with observed short-term momentum in house prices. However, empirically, house price growth tends to revert to its mean in the medium term.

Keywords: Financial stability; Housing (search for similar items in EconPapers)
JEL-codes: C9 D84 R21 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2019-08
New Economics Papers: this item is included in nep-exp
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Persistent link: https://EconPapers.repec.org/RePEc:bca:bocsan:19-24

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