We estimate a regional model of the prices of Danish single-family houses and show that submarkets are interconnected via relative prices, giving rise to a ripple effect. We find strong evidence of a ripple effect in the short run of the model, but less so in the long run. We extend the model to...

Prior to the financial crisis in the mid-2000, house prices increased dramatically and most economists agree that part of the increase in Danish house prices can be characterized as a house- price bubble. The emergence of a house-price bubble can have sizeable implications for macroeconomic as...

This paper studies consumption and savings decisions of Danish households before and during the financial crisis as well as in the more recent years characterized by negative policy rates. While all household groups decreased their consumption ratios immediately in response to the financial...

We study the effect of house price developments on home-equity extraction and household expenditure, exploiting data covering the population of Danish homeowners between 2009 and 2016. Our findings indicate that house price increases affect home-equity extraction - and more so for homeowners...