Scientific journal paper Q1
House prices and credit as transmission channels from monetary policy to inequality: Evidence from OECD countries
Sofia Vale (Vale, S.);
Journal Title
Economic Analysis and Policy
Year (definitive publication)
2024
Language
English
Country
United States of America
More Information
Web of Science®

Times Cited: 0

(Last checked: 2024-11-04 18:58)

View record in Web of Science®

Scopus

This publication is not indexed in Scopus

Google Scholar

Times Cited: 1

(Last checked: 2024-10-31 20:42)

View record in Google Scholar

Abstract
Using a panel vector autoregressive model, this paper assesses the impact of monetary policy on the Gini coefficient of disposable income for 30 OECD countries between 1995Q1 and 2019Q4. We assume house prices and household credit as transmission channels, representing households’ financial balance. To capture the effect of the financial crisis, the analysis further distinguishes the period that started in 2008Q4. We find that a contractionary monetary policy increases the Gini coefficient in a moderate way. For the entire period, house prices are an effective transmission channel, a positive shock decreasing inequality, while credit is not statistically significant. Following the crisis credit stands out as the transmission mechanism, a positive credit shock reducing the Gini coefficient, while house prices lose relevance. These results are robust to different model specifications.
Acknowledgements
--
Keywords
Gini coefficient,Monetary policy,House prices,Household credit,Panel VAR
  • Economics and Business - Social Sciences
Funding Records
Funding Reference Funding Entity
UIDB/00315/2020 Fundação para a Ciência e a Tecnologia

With the objective to increase the research activity directed towards the achievement of the United Nations 2030 Sustainable Development Goals, the possibility of associating scientific publications with the Sustainable Development Goals is now available in Ciência-IUL. These are the Sustainable Development Goals identified by the author(s) for this publication. For more detailed information on the Sustainable Development Goals, click here.