Title
High frequency impact of monetary policy and macroeconomic surprises on us msas, aggregate us housing returns and asymmetric volatility
Document Type
Article
Publication Date
1-1-2018
Abstract
This paper explores the impact of monetary policy and macroeconomic surprises on the U.S housing market returns and volatility at the Metropolitan Statistical Area (MSA) and aggregate level using a GJR (or threshold generalized autoregressive conditional heteroscedasticity (GARCH)) model of Glosten, Jagannathan and Runkle (1993). Using daily data and sampling periods which cover both the conventional and unconventional monetary policy periods, empirical results show that monetary policy surprises have a greater impact on the volatility of housing market returns across time with particularly pronounced effect during the conventional monetary policy period. We also show that macroeconomic surprises do not have a significant impact on housing returns for most MSAs for the full sample, conventional and unconventional monetary policy periods.
Publication Title
Advances in Decision Sciences
Volume Number
22
ISSN
20903359
Recommended Citation
Nyakabawo, Wendy; Gupta, Rangan; and Marfatia, Hardik, "High frequency impact of monetary policy and macroeconomic surprises on us msas, aggregate us housing returns and asymmetric volatility" (2018). Economics Faculty Publications. 24.
https://neiudc.neiu.edu/econ-pub/24