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Monetary policy and real estate prices: a disaggregated analysis for Switzerland

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  • Michael Berlemann

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  • Julia Freese

Abstract

Most empirical studies found that monetary policy has a significant effect on house prices while stock markets remain unaffected by interest rate shocks. In this paper we conduct a more detailed analysis by studying various sub-segments of the real estate market. Employing a new dataset for Switzerland we estimate vector autoregressive models and find positive interest rate shocks to have adverse effects on house and condominium prices on the one hand and rental prices on the other. Commercial property prices as stock markets do not react on interest rate variations. Copyright Springer-Verlag 2013

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File URL: http://hdl.handle.net/10.1007/s10368-012-0222-7
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Bibliographic Info

Article provided by Springer in its journal International Economics and Economic Policy.

Volume (Year): 10 (2013)
Issue (Month): 4 (December)
Pages: 469-490

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Handle: RePEc:kap:iecepo:v:10:y:2013:i:4:p:469-490

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Web page: http://www.springerlink.com/link.asp?id=111059

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Keywords: Monetary policy; Interest rate shocks; Real estate; Stock market; E43; E52; R21;

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