This paper explores the importance of housing and mortgage market heterogeneity in 12 European countries for the … transmission of monetary policy. We use a panel VAR model which is estimated over the period 19952006 to generate impulse responses … of key macroeconomic variables to a monetary policy shock. We propose a datadriven approach that splits our panel of …

-to-value levels and permissive mortgage approvals. We revisit the standard user cost model of housing prices and conclude that the …

other mortgage characteristics, including sub-prime, securitization and leverage. Where IOs were popular, their use does not …