 Germany: Selected IssuesInternational Monetary Fund No 2016/203, IMF Staff Country Reports from International Monetary Fund Abstract: This paper analyzes the macroeconomic impact of targeted labor market reforms aimed at boosting employment and labor productivity and the price responsiveness of German residential investment. Germany’s population is getting older, and potential growth is set to decline. Demographic projections suggest that labor force will start declining around 2020, and will drop at an accelerating pace once immigration flows normalize. After years of stagnation, German housing prices and new residential rents have increased more steeply since 2009, especially in large cities. This paper provides econometric evidence that supply response to changes in housing prices has declined over the past several years and discusses how various housing policies can foster this response. Keywords: ISCR; CR; rate; construction; price; construction cost; labor market integration; building land price variable; replacement rate; residential construction; labor tax wedge; inflation expectation; Housing; Labor supply; Housing prices; Price elasticity; Labor markets; Global (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2016/203 Ordering information: This working paper can be ordered from Access Statistics for this paper More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC. |
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