Housing markets and the macroeconomy

This project makes two main contributions: (i) the construction of a single housing price index that allows for regional
differences; (ii) using this index in a macroeconomic model to evaluate the role of different monetary,
macroprudential and housing policies in the adjustment of the economy to a variety of structural shocks.
Research environment and strategy: The project fits with ESRC strategic priorities on housing and on understanding
the macroeconomy. The project fits with the research environment and strategy Lancaster:
- The project involves time series econometrics and macroeconomics, both areas in which LU has a strong
tradition.
- Economics dept hosts the UK Housing Observatory
- LU and BoE have already established links in the form of UG internships and an aim of the project is to extend
this collaboration to PG; the BoE supervisor is an Honorary Professor at LU in the Macroeconomic and
Financial Markets group within the Economics dept.