VECM and Impulse Response Functions Analysis on Wealth and Balance Sheet Effect in Czech Republic and South Africa Housing Market

نویسنده

  • Rita Yi Man Li
چکیده

This paper studies the interest rate exposure of the housing markets and the role of housing prices in monetary transmission mechanism in two emerging markets, Czech Republic and South Africa. The Granger causality test results indicate that housing price fluctuations create wealth and balance sheet effect in both countries. The results of impulse response functions based on the VECMs show that the impact of wealth and balance sheet effect are greater in South Africa, and South Africa faces a greater interest rate exposure in housing market.

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تاریخ انتشار 2012