Data and Code for: Interest rates and the spatial polarization of housing markets

Principal Investigator(s):  View help for Principal Investigator(s) Francisco Amaral, University of Bonn; Martin Dohmen, University of Bonn; Sebastian Kohl, Free University Berlin,; Moritz Schularick, University of Bonn and Sciences Po Paris

Version:  View help for Version V1

Name File Type Size Last Modified
  code 04/29/2023 05:19:AM
  data 01/05/2023 11:07:AM
  output 01/05/2023 11:09:AM
README .txt text/plain 6.8 KB 07/05/2023 10:46:AM

Project Citation: 

Amaral, Francisco, Dohmen, Martin , Kohl, Sebastian, and Schularick, Moritz . Data and Code for: Interest rates and the spatial polarization of housing markets. Nashville, TN: American Economic Association [publisher], 2024. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2024-02-15. https://doi.org/10.3886/E183842V1

Project Description

Summary:  View help for Summary Rising within-country differences in house values are a much debated trend in
the U.S. and internationally. Using new long-run regional data for 15 advanced
economies, we first show that standard explanations linking growing price dispersion
to rent dispersion are contradicted by an important stylized fact: rent dispersion
has increased far less than price dispersion. We then propose a new explanation: a
uniform decline in real risk-free interest rates can have heterogeneous spatial effects
on house values. Falling real safe rates disproportionately push up prices in large
agglomerations where initial rent-price ratios are low, leading to housing market
polarization on the national level.
Funding Sources:  View help for Funding Sources European Research Council Grant (ERC- 2017-COG 772332); Deutsche Forschungsgemeinschaft (DFG) (EXC 2126/1 – 390838866)

Scope of Project

Subject Terms:  View help for Subject Terms House prices; regional housing markets; spatial polarization
JEL Classification:  View help for JEL Classification
      G10 General Financial Markets: General (includes Measurement and Data)
      G12 Asset Pricing; Trading Volume; Bond Interest Rates
      G51 Household Finance: Household Saving, Borrowing, Debt, and Wealth
      R30 Real Estate Markets, Spatial Production Analysis, and Firm Location: General
Time Period(s):  View help for Time Period(s) 1950 – 2018


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V1 [2024-02-15]

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