ANALYSING THE TRANSMISSION PATTERN WITHIN THE FRAMEWORK OF HOUSING SUPPLY AND MONETARY POLICY IN AUSTRALIA misbe2011 Tracking Number 148Presentation: Session: General Paper Session W55 - Economics of the built environment Room: Skippers cafe Session start: 10:30 Tue 21 Jun 2011 Junxiao Liu junxiaol@deakin.edu.au Affifliation: School of Architecture & Building, Deakin University, Australia Kerry London kerry.london@rmit.edu.au Affifliation: School of Property, Construction and Project Management, RMIT University, Australia Topics: - Economics of the building environment (General Themes) Abstract: Housing supply is one of important components of the housing sector. Compared with an increasingly strong housing demand, the growth rates of total housing stock in Australia have exhibited a downward trend since the end of the 1990s whilst the significant adjustments in the Australian monetary policy were being implemented. This research aims to estimate the nature of the relationship between housing supply and monetary policy by a vector error correction model. According to the empirical results, a transmission pattern comprised of the indicators associated with housing supply and monetary policy can be identified, which suggests that there is a significant interrelationship between monetary policy and the supply side of the housing sector in Australia. |