@techreport{Setzer2010Heterogeneity,
abstract = {In this paper we examine why monetary aggregates of euro area Member States have developed differently since the inception of the euro. We derive a money demand equation that incorporates housing wealth and collateral as well as substitution effects on real money holdings. Empirically, we show that cross-country differences in real balances are determined not only by income differences, a standard determinant of money demand, but also by house price developments. Higher house prices and higher user costs of housing are both associated with larger money holdings. Country-specific money holdings are also connected with structural features of the housing market.},
address = {Frankfurt, M.},
author = {Ralph Setzer and Paul van den Noord and Guntram B. Wolff},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
isbn = {978-3-86558-601-8},
keywords = {E41; E51; E52; 330; Money; housing; national contribution; euro area; Geldnachfrage; Wohneigentum; Immobilienpreis; Sch\"{a}tzung; Eurozone},
language = {eng},
number = {2010,04},
publisher = {Dt. Bundesbank},
title = {Heterogeneity in money holdings across euro area countries: The role of housing},
type = {Discussion Paper Series 1: Economic Studies},
url = {http://hdl.handle.net/10419/32455},
year = {2010}
}
