27/01/17
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Author(s): Andreas Breitenfellner, Jesús Crespo Cuaresma, Philipp Mayer
Energy Inflation and House Price Corrections
(756 kB) 
Summary for non-specialists(26 kB)
Using a dataset for 18 OECD economies spanning the last four decades, we identify periods of downward house price adjustment and estimate conditional logit models to measure the effect of energy inflation on the probability of these house price corrections after controlling for other relevant macroeconomic variables. Our results give strong evidence that increases in energy price inflation raise the probability of such corrective periods taking place. We discuss various channels that could explain this phenomenon as well as the implication of our results to the analysis of macro-financial risks.
| KC-AI-12-471-EN-N (online) | |
| ISBN 978-92-79-22992-3 (online) | |
| doi: 10.2765/27743 (online) |
Economic Papers are written by the staff of the Directorate-General for Economic and Financial Affairs, or by experts working in association with them. The Papers are intended to increase awareness of the technical work being done by staff and to seek comments and suggestions for further analysis. The views expressed are the author’s alone and do not necessarily correspond to those of the European Commission.
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