Owner-Occupied Housing, Inflation, and Monetary Policy

Robert J. Hill; Miriam Steurer; Sofie Waltl

doi:10.1111/jmcb.13059

Owner-Occupied Housing, Inflation, and Monetary Policy

Robert J. Hill^*, Miriam Steurer, Sofie Waltl

^*Corresponding author for this work

Department of Economics (Crespo Cuaresma)

Publication: Scientific journal › Journal article › peer-review

Abstract

Owner-occupied housing (OOH) is currently excluded from the harmonized index of consumer prices (HICP) in Europe. Using microlevel data for Sydney and aggregated data for the United States, France, and Germany, we compare the impact of alternative treatments of OOH on measured inflation. We recommend including OOH in the HICP using a simplified version of the user-cost method. This would improve the harmonization of the HICP, help close the credibility gap between measured inflation and public perceptions of it, and allow the ECB to lean against a housing boom without departing from its inflation target.

Original language	English
Journal	Journal of Money, Credit and Banking (JMCB)
DOIs	https://doi.org/10.1111/jmcb.13059
Publication status	E-pub ahead of print - May 2023

Austrian Classification of Fields of Science and Technology (ÖFOS)

502051 Economic statistics

Access to Document

10.1111/jmcb.13059

Check availability

University Library Catalogue

Cite this

@article{fe75583a53c3408e8981096fa08f62ae,

title = "Owner-Occupied Housing, Inflation, and Monetary Policy",

abstract = "Owner-occupied housing (OOH) is currently excluded from the harmonized index of consumer prices (HICP) in Europe. Using microlevel data for Sydney and aggregated data for the United States, France, and Germany, we compare the impact of alternative treatments of OOH on measured inflation. We recommend including OOH in the HICP using a simplified version of the user-cost method. This would improve the harmonization of the HICP, help close the credibility gap between measured inflation and public perceptions of it, and allow the ECB to lean against a housing boom without departing from its inflation target.",

author = "Hill, {Robert J.} and Miriam Steurer and Sofie Waltl",

year = "2023",

month = may,

doi = "10.1111/jmcb.13059",

language = "English",

journal = "Journal of Money, Credit and Banking (JMCB)",

issn = "0022-2879",

publisher = "Wiley-Blackwell",

}

TY - JOUR

T1 - Owner-Occupied Housing, Inflation, and Monetary Policy

AU - Hill, Robert J.

AU - Steurer, Miriam

AU - Waltl, Sofie

PY - 2023/5

Y1 - 2023/5

N2 - Owner-occupied housing (OOH) is currently excluded from the harmonized index of consumer prices (HICP) in Europe. Using microlevel data for Sydney and aggregated data for the United States, France, and Germany, we compare the impact of alternative treatments of OOH on measured inflation. We recommend including OOH in the HICP using a simplified version of the user-cost method. This would improve the harmonization of the HICP, help close the credibility gap between measured inflation and public perceptions of it, and allow the ECB to lean against a housing boom without departing from its inflation target.

AB - Owner-occupied housing (OOH) is currently excluded from the harmonized index of consumer prices (HICP) in Europe. Using microlevel data for Sydney and aggregated data for the United States, France, and Germany, we compare the impact of alternative treatments of OOH on measured inflation. We recommend including OOH in the HICP using a simplified version of the user-cost method. This would improve the harmonization of the HICP, help close the credibility gap between measured inflation and public perceptions of it, and allow the ECB to lean against a housing boom without departing from its inflation target.

U2 - 10.1111/jmcb.13059

DO - 10.1111/jmcb.13059

M3 - Journal article

SN - 0022-2879

JO - Journal of Money, Credit and Banking (JMCB)

JF - Journal of Money, Credit and Banking (JMCB)

ER -