00000nam 2200000za 4500 9.830352 CaOODSP 20240826173414 cr ||||||||||| 170111s2016 oncd ob f000 0 eng d CaOODSP eng eng fre n-cn--- FB3-5/2016-62E-PDF Bulusu, Narayan. Can the common-factor hypothesis explain the observed housing wealth effect? [electronic resource] / by Narayan Bulusu, Jefferson Duarte and Carles Vergara-Alert. [Ottawa] : Bank of Canada, c2016. ii, 50 p. : col. ill. Staff Working Paper, 1701-9397 ; 2016-62 "December 2016." Includes bibliographical references. "The common-factor hypothesis is one possible explanation for the housing wealth effect.Under this hypothesis, house price appreciation is related to changes in consumption aslong as the available proxies for the common driver of housing and non-housing demandare noisy and housing supply is not perfectly elastic. We simulate a model in which acommon factor drives the relation between house prices and consumption to examine theextent to which the common-factor hypothesis can explain the housing wealth effect. Ourresults indicate that the common-factor hypothesis can easily explain the strong housingwealth effect estimated with US state-level data"--Abstract, p. ii. Includes abstract in French. gccst Economic analysis gccst Housing gccst Modelling Duarte, Jefferson. Vergara-Alert, Carles. Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2016-62 (CaOODSP)9.806221 PDF 906 KB https://publications.gc.ca/collections/collection_2017/banque-bank-canada/FB3-5-2016-62-eng.pdf