Publication Type
Working Paper
Version
publishedVersion
Publication Date
10-2019
Abstract
Excessive house price growth was at the heart of the financial crisis in 2007/08. Since then, many countries have added cooling measures to their regulatory frameworks. It has been found that these measures can indeed control price growth, but no one has examined whether this has adverse consequences for the housing wealth distribution. We examine this for Singapore, which started in 2009 to target price growth over ten rounds in total. We find that welfare from housing wealth in the last round might not be higher than before 2009. This depends on the deflator used to convert nominal into real prices. Irrespective of the deflator, we can reject that welfare increased monotonically over the different rounds.
Keywords
house price distribution, stochastic dominance tests, Singapore
Discipline
Asian Studies | Behavioral Economics | Finance | Real Estate
Research Areas
Finance
First Page
1
Last Page
44
Identifier
10.2139/ssrn.3463566
Embargo Period
5-18-2021
Citation
HARDLE, Wolfgang K.; SCHULZ, Rainer; and XIE, Taojun.
Cooling measures and housing wealth: Evidence from Singapore. (2019). 1-44.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/6709
Copyright Owner and License
Authors / SKBI
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.2139/ssrn.3463566
Included in
Asian Studies Commons, Behavioral Economics Commons, Finance Commons, Real Estate Commons