Theory and empirical evidence have provided contradictory predictions and findings on the impact of government spending on housing investment and home values. An increase in government outlays may boost output and activity, but housing investment, like other investment, could be subject to...

The present paper assesses the impact of fiscal policy on residential investment in France. The analysis is conducted in the framework of a VECM, since this allows accounting for endogeneity between the variables. Our results imply that a long term relationship between investment and subsidies...