Home Ownership and Monetary Policy Transmission

Winfried Koeniger and Marc-Antoine Ramelet

No 11950, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We present empirical evidence on the heterogeneity in monetary policy transmission across countries with different home ownership rates. We use household-level data together with shocks to the policy rate identified from high-frequency data. We find that housing tenure reacts more strongly to unexpected changes in the policy rate in Germany and Switzerland - the OECD countries with the lowest home ownership rates - compared with existing evidence for the U.S. An unexpected decrease in the policy rate by 25 basis points increases the home ownership rate by 0.8 percentage points in Germany and by 0.6 percentage points in Switzerland. The response of non-housing consumption in Switzerland is less heterogeneous across renters and mortgagors, and has a different pattern across age groups than in the U.S. We discuss economic explanations for these findings and implications for monetary policy.

Keywords: housing tenure; home ownership; monetary policy transmission; consumption (search for similar items in EconPapers)
JEL-codes: E21 E52 R21 (search for similar items in EconPapers)
Pages: 67 pages
Date: 2018-11
New Economics Papers: this item is included in nep-cba, nep-eec, nep-mac, nep-mon and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published - revised version published as 'On the Transmission of Monetary Policy to the Housing Market' in: European Economic Review, 2022, 145, 104107 (with Benedikt Lennartz and Marc-Antoine Ramelet)

Downloads: (external link)
https://docs.iza.org/dp11950.pdf (application/pdf)

Related works:
Journal Article: On the transmission of monetary policy to the housing market (2022)
Working Paper: Home Ownership and Monetary Policy Transmission (2018)
Working Paper: Home Ownership and Monetary Policy Transmission (2018)
Working Paper: Home Ownership and Monetary Policy Transmission (2018)
Working Paper: Home ownership and monetary policy transmission (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp11950

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().