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Manufacturing Decline and House Price Volatility

Author

Listed:
  • Isaiah Hull

    (Sveriges Riksbank)

  • Conny Olovsson

    (Sveriges Riksbank)

  • Karl Walentin

    (Sveriges Riksbank)

  • Andreas Westermark

    (Sveriges Riksbank)

Abstract

Using a new dataset of all Swedish housing transactions over the 2009-2017 period, we find that manufacturing's share of employment is positively associated with house price growth volatility and negatively associated with risk-adjusted capital gains. Both effects appear to be related to manufacturing's impact on firm concentration and employment volatility. Moreover, they imply that the manufacturing decline since 1970 could account for a 35% reduction in house price volatility. (Copyright: Elsevier)

Suggested Citation

  • Isaiah Hull & Conny Olovsson & Karl Walentin & Andreas Westermark, 2022. "Manufacturing Decline and House Price Volatility," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 45, pages 264-281, July.
    • Handle: RePEc:red:issued:19-28
    DOI: 10.1016/j.red.2021.06.005
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    References listed on IDEAS

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    More about this item

    Keywords

    House Prices; Portfolio Choice; Manufacturing; Volatility;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions

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