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Impact of macroprudential policies on house price expectations- evidence from survey data

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  • Rooj, Debasis
  • Banerjee, Anurag
  • Sengupta, Reshmi

Abstract

This paper investigates the impact of macroprudential policies (MPP) on house price expectations using novel data from the Inflation Expectation of Households survey across 19 major Indian cities released by the Reserve Bank of India. MPP negatively impacts house price expectations, especially borrower-based macroprudential policies. We also find that tightening MPP impacts the retired group more than other occupational groups.

Suggested Citation

  • Rooj, Debasis & Banerjee, Anurag & Sengupta, Reshmi, 2024. "Impact of macroprudential policies on house price expectations- evidence from survey data," Economics Letters, Elsevier, vol. 236(C).
    • Handle: RePEc:eee:ecolet:v:236:y:2024:i:c:s0165176524000958
    DOI: 10.1016/j.econlet.2024.111612
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    References listed on IDEAS

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    1. Kuttner, Kenneth N. & Shim, Ilhyock, 2016. "Can non-interest rate policies stabilize housing markets? Evidence from a panel of 57 economies," Journal of Financial Stability, Elsevier, vol. 26(C), pages 31-44.
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    5. Alessia De Stefani, 2021. "House price history, biased expectations, and credit cycles: The role of housing investors," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(4), pages 1238-1266, December.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Macroprudential policies; House price expectations; Household finance;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth

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