Energy Inflation and House Price Corrections

Andreas Breitenfellner, Jesus Crespo Cuaresma and Philipp Mayer

No 471, European Economy - Economic Papers 2008 - 2015 from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: Using a dataset for 18 OECD economies spanning the last four decades, we identify periods of downward house price adjustment and estimate conditional logit models to measure the effect of energy inflation on the probability of these house price corrections after controlling for other relevant macroeconomic variables. Our results give strong evidence that increases in energy price inflation raise the probability of such corrective periods taking place. We discuss various channels that could explain this phenomenon as well as the implication of our results to the analysis of macro-financial risks.

JEL-codes: C33 G01 Q43 R21 R31 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2012-11
New Economics Papers: this item is included in nep-ene and nep-ure
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Citations: View citations in EconPapers (1)

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Journal Article: Energy inflation and house price corrections (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:euf:ecopap:0471

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