House Prices and Job Losses

Pintér, Gábor

doi:10.1111/ecoj.12613

Cited by 17 publications

(10 citation statements)

References 74 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…As much as 9 out of the 11 U.S. recessions since 1950 were preceded by declines in housing. In turn, the growing complexity of financial markets may translate into dire economic and social consequences of a burst of a house price bubble (see, Pintér, 2018), which the subprime crisis has proved in retrospect. During a housing bust, construction, consumption and lending rapidly fall down with negative implications for the real GDP growth and unemployment.…”

Section: Literature Reviewmentioning

confidence: 99%

Money, Credit, House Prices and Quantitative Easing – The Wavelet Perspective From 1970 to 2016

Ryczkowski

2019

Journal of Business Economics and Management

View full text Add to dashboard Cite

This paper investigates the relationship between money/credit growth and house price inflation for a sample of twelve developed countries. The novel application of the continuous wavelet transform showed significant but time-varying linkages between these two variables. During quantitative easing in the United States and the United Kingdom, growth of respectively broad money and bank credit was leading house price inflation for the 2-8 years cycle. In contrast to this, the Bank of Japan and the European Central Bank either did not assign a separate role to house prices in their reaction functions or the two central banks were not capable to significantly increase house prices by extending money/credit during the business cycle. The significant co-movements of financial variables and house prices around booming episodes warn us that a new asset price boom might appear within the length of a business cycle as a consequence of overly expansionary monetary policy. In the euro area, the significant, long run, and close to a one-for-one link between growth of M3 and house price inflation is an argument for the monetary pillar of the European Central Bank. The present study contributes significantly to the literature by introducing a novel application of a continuous wavelet transform to study the housing prices in relation to money, credit and quantitative easing. The article uses a long-term dataset covering a period of almost half a century to analyse their varying relationship in the short-run to the long-run and from the historical perspective.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Money, Credit, House Prices and Quantitative Easing – The Wavelet Perspective From 1970 to 2016

Ryczkowski

2019

Journal of Business Economics and Management

View full text Add to dashboard Cite

show abstract

“…This second recession was shallower than that of 1980-81, with unemployment peaking at around 10% between 1992 and 1994. Unlike the previous crisis, house prices crashed, losing 10% of their value in 1990 (Pintér, 2019).…”

Section: A1 Macroeconomic Trendsmentioning

confidence: 94%

This Time is Not so Different: Income Dynamics During the COVID-19 Recession

Bell

Bloom

Blundell

2021

View full text Add to dashboard Cite

We thank Luigi Pistaferri for comments and advice throughout. This work contains statistical data from ONS which is Crown Copyright. The use of the ONS statistical data in this work does not imply the endorsement of the ONS in relation to the interpretation or analysis of the statistical data. This work uses research datasets which may not exactly reproduce National Statistics aggregates. This work uses results originally presented in Bell, Bloom, and Blundell (2021). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

show abstract

“…A recent contribution by Liu, Miao, and Zha () provides some empirical evidence on the role played by real estate prices in terms of the increase in the volatility of the labour market in the United States. In a similar vein, Pinter (), who focuses on the relationship between house prices and the labour market in the United Kingdom case, reports that the “collateral” channel is the underlying mechanism that drives the mentioned relationship. In other words, Pinter () suggests that a decline in real estate prices affects negatively firms' borrowing capacity, which slows down job creation and accelerates job destruction.…”

Section: Conceptual Frameworkmentioning

confidence: 98%

“…In a similar vein, Pinter (), who focuses on the relationship between house prices and the labour market in the United Kingdom case, reports that the “collateral” channel is the underlying mechanism that drives the mentioned relationship. In other words, Pinter () suggests that a decline in real estate prices affects negatively firms' borrowing capacity, which slows down job creation and accelerates job destruction. Another interesting finding of this contribution is that there is some comovement between house prices and job separation rates, as well as between house prices and job finding rates .…”

Section: Conceptual Frameworkmentioning

confidence: 98%

See 1 more Smart Citation

Economic precariousness: A new channel in the housing market cycle

Arestis

González

2019

Int. J Fin Econ

View full text Add to dashboard Cite

Demographic and institutional elements, as important drivers of the housing market, should not be neglected because it is not only financial and monetary elements that matter in the case of the housing market. In this context, one relationship, which still remains unclear, is the relationship between the housing and the labour markets. Some research has been undertaken to support the hypothesis that high rates of homeownership lead to high unemployment via increases in the reservation wage. However, further research is needed to address the possible implications of the institutional settings of the labour market in the dynamics of the housing market. The aim of this paper is to bring some light on the link between both markets. In particular, this contribution explains how the housing cycle could be “amplified” via a new channel, that is, economic precariousness, which is closely related to job insecurity. Subsequently, we provide evidence in the case of five developed economies, Ireland, the Netherlands, Spain, the United Kingdom, and the United States, over the period 1985–2013.

show abstract

House Prices and Job Losses

Abstract: What explains the strong comovement between house prices and job

Cited by 17 publications

References 74 publications

Money, Credit, House Prices and Quantitative Easing – The Wavelet Perspective From 1970 to 2016

Money, Credit, House Prices and Quantitative Easing – The Wavelet Perspective From 1970 to 2016

This Time is Not so Different: Income Dynamics During the COVID-19 Recession

Economic precariousness: A new channel in the housing market cycle

Contact Info

Product

Resources

About