Empirical links between housing markets and economic resilience

Boris Cournède, Sahra Sakha and Volker Ziemann

No 1562, OECD Economics Department Working Papers from OECD Publishing

Abstract: Housing markets, which are large and subject to sharp swings, shape to a great extent countries’ exposure to economic crises and their capacity to recover from them. This paper analyses the transmission of housing-related shocks to the real economy: it investigates the role that policy plays in (a) mitigating or amplifying shocks and (b) facilitating or hampering a recovery. It considers macroprudential measures, rental regulation, taxation and land use restrictions. The aim is to investigate, which housing policy-related reforms can foster greater economic resilience. Among other results, it finds that a tighter macroprudential stance is generally linked to a lower likelihood of economic crisis and that higher effective rates of housing taxation are associated with smoother housing cycles.

Keywords: housing; land use policy; macroprudential policy; rent regulation; resilience; taxation (search for similar items in EconPapers)
JEL-codes: E37 E5 R31 (search for similar items in EconPapers)
Date: 2019-07-26
New Economics Papers: this item is included in nep-mac and nep-ure
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:oec:ecoaaa:1562-en

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