Date of Award
2025
Document Type
Honors Thesis (Open Access)
Department
Colby College. Economics Dept.
Advisor(s)
Rob Lester
Second Advisor
Dave Findlay
Abstract
This paper examines how changes in the global savings and investment market impact housing prices and supply in the United Kingdom. I first constructed a global interest rate using principal component analysis. Then, using structural VARs, I estimate impulse response functions to study the dynamics of housing prices and supply in the UK with an impulse in the global interest rate. The model predicts that housing prices and supply will increase immediately and then decrease after a lag. The decrease is primarily driven by the years after the stock market crash as opposed to before.
Keywords
Global Interest Rate, International Macroeconomics
Recommended Citation
Namboodiri, Laxmi, "Global Rate Pass Through: Impact of the Global Savings Market on Home Prices in the UK" (2025). Honors Theses. Paper 1506.https://digitalcommons.colby.edu/honorstheses/1506
