Thesis / Dissertation

Housing prices, debt and beliefs

Stephen Robert Kevin Elias, Tim Robinson (ed.)

Published : 2020

Abstract

Large credit-fuelled swings in house prices can inflict substantial damage on the real economy. Indeed, the associated recessions historically have been particularly severe (Jorda, Schularick, and Taylor 2015). A literature points to house price belief formation as potentially being key to these swings. This thesis studies how these beliefs are best characterised as being formed using survey data, and examines the role house price belief formation plays in credit-fuelled house price swings and their transmission to the macroeconomy. It also evaluates how policies -- particularly macroprudential policies -- can best address volatility stemming from the housing market. I assess how house pr..

View full abstract