A Housing Portfolio Channel of QE Transmission

Dominik Boddin, Daniel te Kaat, Chang Ma and Alessandro Rebucci ()

No 32211, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We document a housing portfolio channel of quantitative easing (QE) transmission exploiting variation in German household data in a difference-in-differences setting around QE adoption in 2015. We find that QE encourages households with larger initial bond positions to rebalance more toward second homes. Rebalancing is especially pronounced among higher-income and church-affiliated households with stronger tax incentives to purchase and rent out properties. We also show that, in regions more exposed to this channel, house prices increase more than rents, and sale listings decrease more than rental ones, suggesting that the rental supply may increase in response to QE.

JEL-codes: E0 G11 R0 (search for similar items in EconPapers)
Date: 2024-03
New Economics Papers: this item is included in nep-cba and nep-ure
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Working Paper: A Housing Portfolio Channel of QE Transmission (2024)
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