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Full-Text Articles in Macroeconomics
Essays On Housing And Macroeconomics, Pablo Lara Hinojos
Essays On Housing And Macroeconomics, Pablo Lara Hinojos
Dissertations, Theses, and Capstone Projects
Chapter 1: House Prices and Aggregate Markups: A VAR Approach
Based on the empirical results of Stroebel and Vavra (2019), who find that a local increase in house prices translates into higher local retail markups and prices, I investigate whether this relationship holds at the aggregate level. I first construct a quarterly aggregate markup series and find that house prices and aggregate markups have a positive relationship. This result emerges from a Vector Autoregression (VAR) system that includes the nominal interest rate, the inflation rate, aggregate house prices, aggregate markups, and real output. I use the Impulse Response Functions (IRFs) …