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Housing markets and macroeconomic risks

Author

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  • Maria Chiara Cavalleri
  • Boris Cournède
  • Volker Ziemann

Abstract

Housing markets are large and highly volatile: they can thus create large macroeconomic risks. The current paper provides a bird’s eye view of where the housing markets of major OECD economies currently stand. It then uses the results of recently developed models to provide indications of where macroeconomic risks exist. Finally, the paper draws on recent empirical analyses to suggest how economic policies can enhance economic resilience by reducing housing-related risks through macroprudential measures and housing market reforms (such as changes in rent regulation, taxation and land use policies).

Suggested Citation

  • Maria Chiara Cavalleri & Boris Cournède & Volker Ziemann, 2019. "Housing markets and macroeconomic risks," OECD Economics Department Working Papers 1555, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1555-en
    DOI: 10.1787/737133d8-en
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    File URL: https://doi.org/10.1787/737133d8-en
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    More about this item

    Keywords

    Housing; land use policy; macroprudential; policy; rent regulation; resilience; taxation;
    All these keywords.

    JEL classification:

    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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