The Reaction of Real Estate-Related Industries to the Monetary Policy Actions
2010; Wiley; Volume: 38; Issue: 2 Linguagem: Inglês
10.1111/j.1540-6229.2010.00270.x
ISSN1540-6229
AutoresLevon Goukasian, Mahdi Majbouri,
Tópico(s)Monetary Policy and Economic Impact
ResumoReal Estate EconomicsVolume 38, Issue 2 p. 355-398 The Reaction of Real Estate–Related Industries to the Monetary Policy Actions Levon Goukasian, Levon Goukasian Business Administration Division, Pepperdine University, Malibu, CA 90263-4237 or levon.goukasian@pepperdine.edu.Search for more papers by this authorMehdi Majbouri, Mehdi Majbouri Department of Economics, University of Southern California, Los Angeles, CA 90089-0253 or majbouri@usc.edu.Search for more papers by this author Levon Goukasian, Levon Goukasian Business Administration Division, Pepperdine University, Malibu, CA 90263-4237 or levon.goukasian@pepperdine.edu.Search for more papers by this authorMehdi Majbouri, Mehdi Majbouri Department of Economics, University of Southern California, Los Angeles, CA 90089-0253 or majbouri@usc.edu.Search for more papers by this author First published: 20 May 2010 https://doi.org/10.1111/j.1540-6229.2010.00270.xCitations: 11Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat Abstract We study the impact of changes in U.S. monetary policy on the equity returns of real estate–related industries. We find that, over the 1989–2005 sample period covered in our study, a hypothetical unexpected rate cut of 25 basis points (bps) is associated with an increase of about 170 bps in the value-weighted returns of real estate–related industries. We find that monetary policy impacts the stock prices in real estate–related industries through its impact on the future expected stock returns and not on real interest rates or expected future dividends. There is also some evidence of asymmetry in the responses of the industry returns to the monetary policy actions. A strong stock price response to reversals in the direction of the Federal Reserve's monetary policy is reported. Citing Literature Volume38, Issue2Summer 2010Pages 355-398 RelatedInformation
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