Current account dynamics and the housing cycle in Spain

Maas, Daniel; Mayer, Eric; Rüth, Sebastian K.

doi:10.1016/j.jimonfin.2018.05.007

Cited by 11 publications

(4 citation statements)

References 78 publications

(125 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This hypothesis is reminiscent of the idea connected to the so called saving glut. 13 German private investors sought profitable investment opportunities in particular in the European periphery and the US housing market, while investment activity and consumption in Germany was low (see Maas et al (2018)). This view also encompasses the notion that capital exports may reflect private households retirement savings plans due to Germany's aging population.…”

Section: Other Suspectsmentioning

confidence: 99%

The corporate saving glut and the current account in Germany

Klug

Mayer

Schuler

2022

Journal of International Money and Finance

Self Cite

View full text Add to dashboard Cite

We investigate for the case of Germany the positive correlation between the corporate saving glut in the non-financial corporate sector and the current account surplus from a capital account perspective. By employing sign restrictions our findings suggest that mostly labor market, world demand and financial friction shocks account for the joint dynamics of excess corporate saving and the current account surplus. Household saving shocks, in contrast, cannot explain the correlation. We conclude that the corporate saving glut, explained through these factors, is the main driver of the current account surplus.

show abstract

Section: Other Suspectsmentioning

confidence: 99%

The corporate saving glut and the current account in Germany

Klug

Mayer

Schuler

2022

Journal of International Money and Finance

Self Cite

View full text Add to dashboard Cite

show abstract

“…Although the performance of housing markets in the Eurozone has been an important research topic, few studies investigate housing bubble-like behavior in the Eurozone, compared to the numerous studies analyzing US housing bubbles. Some studies have looked at the factors that influence housing prices in the Eurozone (e.g., Risseand Kern, 2016;Rahal, 2016;Maas et al, 2018; Sol e-Olle & Viladecans-Marsal, 2019), while others at housing price correlation or contagion (e.g., Vansteenkiste & Hiebert, 2011; Sol e-Olle & Viladecans-Marsal, 2019).…”

Section: Housing Bubblesmentioning

confidence: 99%

Prospecting Housing Bubbles in Malaysia

Hamid

Razali

Azmi

et al. 2022

Real Estate Management and Valuation

View full text Add to dashboard Cite

There have been extensive studies pertaining on bubble detection in literature, though very few investigate the Malaysian residential property market. The inflated housing market, however, has sparked widespread public anxiety and there has been a proliferation of comments and forecasts about the presence of housing bubbles in Malaysia throughout the last decade. The purpose of this paper is to assess the housing bubbles in Malaysia by using empirical models in detecting Malaysian residential property bubbles. This research employed the Markov Switching (MS) model to investigate the housing bubbles for the Malaysian residential property market. The findings revealed Malaysian housing prices to be relatively stable over the period 2010 to 2019, with states of upheaval occurring only during short-lived periods. Overall, Malaysian housing prices were generally steady between 2010 and 2019, albeit this has shifted slowly in recent years as economic turmoil faded. This study provides empirical results to explain the situation of Malaysian house prices in the recent years.

show abstract

“…Periods of significant capital outflows from many European countries in recent years, particularly following the global financial crisis (GFC) of 2007/8 and the European sovereign debt crisis of 2010, have underscored the need for better understanding of the factors that determine a country's current account (hereafter CA ) position. This importance is highlighted from several perspectives relating to various aspects of the real economy including income distribution (Behringer & van Treek, 2018), the housing cycles (Arestis & Gonzalez‐Martinez, 2016; Maas, Mayer, & Rüth, 2018) and CA reversals (see, for example, Edwards, 2004 and Pancaro & Saborowski, 2015) to mention a few. For countries with large CA deficits, heavy reliance on capital inflows and/or huge foreign‐currency‐denominated debt translates to increased exposure and vulnerability to sudden shifts in investor sentiments.…”

Section: Introductionmentioning

confidence: 99%

Has the current account broken up with its fundamentals in Central and Eastern Europe?

Coleman

Cuestas

2021

Int. J Fin Econ

View full text Add to dashboard Cite

Substantial capital outflows across Europe following the 2007/8 Global Financial Crisis and 2010 European Sovereign Debt crisis raise concerns regarding potential capital outflows from the economies of Central and Eastern European countries. To shed light on country‐level factors that can mitigate crisis and potential capital outflows across these countries, this article investigates which factors have influenced the evolution of their current accounts. Our analyses, using dynamic ordinary least squares, suggest that the long‐run determinants of the current account have indeed changed over time, and threshold cointegrated estimates also confirm that, for each country, the parameters are dependent on thresholds for certain variables and there is significant heterogeneity across the countries. Our overall results are robust to complementary analyses, such as threshold estimation approach. We comment on some possible implications of these differences.

show abstract

Current account dynamics and the housing cycle in Spain

Abstract: If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence.

Cited by 11 publications

References 78 publications

The corporate saving glut and the current account in Germany

The corporate saving glut and the current account in Germany

Prospecting Housing Bubbles in Malaysia

Has the current account broken up with its fundamentals in Central and Eastern Europe?

Contact Info

Product

Resources

About