... mechanisms, like specifically risk preference, debt burden and credit demand, and conducts extensive heterogeneity analyses across household demographics, income levels and housing characteristics. Findings The study reveals a significant asymmetry: housing depreciation reduces consumption far more...

... sums of changes in money supply ( M 2 t +   a n d   M 2 t − ), household income ( I t +   a n d   I t − ) and mortgage rate ( r t + a n d   r t − ). The error-correction model with asymmetry consequently takes the following form: In our model...

... of data. Originality/value This is one of the few studies on housing price dynamics related to the major economies of the European region that explore asymmetries. Additionally, it is the first to explore the asymmetry dynamics using the EPU variable. Sudeshna Ghosh can be contacted...