@inproceedings{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. We infer from these findings that housing developments should feature prominently in the ECB's monetary analysis.},
address = {Frankfurt a. M.},
author = {Ralph Setzer and Paul van den Noord and Guntram B. Wolff},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E41; E51; E52; 330; Money, housing, national contribution, euro area},
language = {eng},
number = {E12-V3},
publisher = {Verein f\"{u}r Socialpolitik},
series = {Beitr\"{a}ge zur Jahrestagung des Vereins f\"{u}r Socialpolitik 2010: \"{O}konomie der Familie - Session: Trade, Financial Markets, and the Euro},
title = {Heterogeneity in money holdings across euro area countries: the role of housing},
url = {http://hdl.handle.net/10419/37401},
year = {2010}
}
