Housing-market heterogeneity in a monetary union
This paper studies the implications of cross-country housing-market heterogeneity in a monetary union for both shock transmission and welfare. I develop a two-country new Keynesian general equilibrium model with housing and collateral constraints to explore this issue. The conventional wisdom is tha...
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| Format: | Article |
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Elsevier
2014
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| Online Access: | https://eprints.nottingham.ac.uk/46405/ |
| _version_ | 1848797318829047808 |
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| author | Rubio, Margarita |
| author_facet | Rubio, Margarita |
| author_sort | Rubio, Margarita |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper studies the implications of cross-country housing-market heterogeneity in a monetary union for both shock transmission and welfare. I develop a two-country new Keynesian general equilibrium model with housing and collateral constraints to explore this issue. The conventional wisdom is that welfare would be higher in a monetary union if mortgage markets were homogeneous. This paper shows instead that welfare is higher only when homogenization does not result in higher aggregate volatility (because of financial accelerator effects) or does not redistribute too much wealth from borrowers to savers. |
| first_indexed | 2025-11-14T20:01:59Z |
| format | Article |
| id | nottingham-46405 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| last_indexed | 2025-11-14T20:01:59Z |
| publishDate | 2014 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-464052020-05-04T16:40:58Z https://eprints.nottingham.ac.uk/46405/ Housing-market heterogeneity in a monetary union Rubio, Margarita This paper studies the implications of cross-country housing-market heterogeneity in a monetary union for both shock transmission and welfare. I develop a two-country new Keynesian general equilibrium model with housing and collateral constraints to explore this issue. The conventional wisdom is that welfare would be higher in a monetary union if mortgage markets were homogeneous. This paper shows instead that welfare is higher only when homogenization does not result in higher aggregate volatility (because of financial accelerator effects) or does not redistribute too much wealth from borrowers to savers. Elsevier 2014-02-01 Article PeerReviewed Rubio, Margarita (2014) Housing-market heterogeneity in a monetary union. Journal of International Money and Finance, 40 . pp. 163-184. ISSN 1873-0639 Housing market; Collateral constraint; Monetary policy; Monetary union http://www.sciencedirect.com/science/article/pii/S0261560613000867 doi:10.1016/j.jimonfin.2013.06.013 doi:10.1016/j.jimonfin.2013.06.013 |
| spellingShingle | Housing market; Collateral constraint; Monetary policy; Monetary union Rubio, Margarita Housing-market heterogeneity in a monetary union |
| title | Housing-market heterogeneity in a monetary union |
| title_full | Housing-market heterogeneity in a monetary union |
| title_fullStr | Housing-market heterogeneity in a monetary union |
| title_full_unstemmed | Housing-market heterogeneity in a monetary union |
| title_short | Housing-market heterogeneity in a monetary union |
| title_sort | housing-market heterogeneity in a monetary union |
| topic | Housing market; Collateral constraint; Monetary policy; Monetary union |
| url | https://eprints.nottingham.ac.uk/46405/ https://eprints.nottingham.ac.uk/46405/ https://eprints.nottingham.ac.uk/46405/ |