Abstract
ABSTRACT In this study, I replicated earlier research by Favara and Imbs from 2015 by re-examining the effects of credit supply via interstate branch banking deregulation on housing price changes and housing supply; and expanding their research with a federal subsidies index. Using randomized control and treatment groups, weighted least squares (WLS) and instrumental variable (IV) regression analysis, Favara and Imbs found that credit supply via interstate branch banking deregulation influenced housing price changes and housing stock. Using the federal subsidies index, I investigated the effects of subsides on housing price changes and housing supply. Adding natural logarithmic values of the federal subsidies data obtained from the St. Louis Federal Reserve Economic Database (FRED) and multiplying those values by Saiz's elasticity measure and its inverse, the findings showed federal subsidies increased housing price changes and housing supply while reducing the effects of credit supply via deregulation on housing price changes and housing supply. Keywords Government, effects, price, housing industry
Published Version
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