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

Copyright Owner and License

Authors / SKBI

Additional URL

https://doi.org/10.2139/ssrn.3463566

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