In view of regional house prices drifting apart, we examine whether regionally differentiated macroprudential policies can address financial stability concerns and moderate house price differences. To this end, we disaggregate both the household sector and the housing stock in a two-region DSGE...

We document that the transmission of monetary policy to real house prices and housing investment is heterogeneous across the US states during the period 1983-2008 and relate this heterogeneity to various state level observable factors. We find that an expansionary monetary policy raises real...

The UK housing market features some of the most expensive, yet smallest dwellings in Europe. Nonetheless, historically low policy rates fuel housing demand. But because incomes, regulatory and physical constraints differ across regions, so does the transmission of an aggregate policy shock. This...