The Impact of Oil Shocks on the Housing Market: Evidence from Canada and U.S

Robert N. Killins, Peter V. Egly and Diego Escobari

MPRA Paper from University Library of Munich, Germany

Abstract: The recent volatility in oil energy markets invites us to re-assess the impact of oil prices changes on the macroeconomic environment. The Great Recession of 2007-2009 led to closer monitoring of global housing markets by regulators and market participants. Employing a structural vector autoregressive model, we find that the reaction of housing markets to oil price shocks varies significantly depending on whether the change in oil prices is prompted by demand or supply shocks in the oil market and on country oil trading status (i.e. net importer or net exporter). Our results are robust to the inclusion of different macroeconomic channels through which oil shocks may influence housing prices and control for restricted dynamic feedback effects. We also study the role of the phases of the housing cycle.

Keywords: Oil prices; housing markets; structural vector autoregression (search for similar items in EconPapers)
JEL-codes: F30 G15 (search for similar items in EconPapers)
Date: 2017-07-20
New Economics Papers: this item is included in nep-ene
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Citations: View citations in EconPapers (14)

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Journal Article: The impact of oil shocks on the housing market: Evidence from Canada and U.S (2017)
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