Date of Award
2024
Degree Type
Doctoral Dissertation
Degree Name
Doctor of Business Administration (DBA)
Department
Jack Welch College of Business & Technology
Dissertation Supervisor
Dr. Lucjan T. Orlowski
Committee Member
Dr. Monika Sywak
Committee Member
Dr. Jennifer Trudeau-Tham
Abstract
This paper analyzes the changeable impact of economic policy uncertainty and mortgage rates on the supply of new homes for sale in the United States. The homes supply is proxied by the ratio of new homes for sale to new houses sold. The analysis utilizes monthly data from January 1985 to November 2023. The relationship is assessed using least square regression with second order autoregressive correction as well as Bai-Perron multiple breakpoint regression for structural breaks and Markov switching tests for state-dependency. The results demonstrate a significant direct correlation between economic policy uncertainty and housing supply, but only during the February 2009 – January 2013 subperiod, i.e. in the environment of very low interest rates. Responsiveness of housing supply to economic policy uncertainty is particularly high during episodes of financial crises. These results may provide valuable insights for policymakers and other stakeholders to make informed decisions regarding the sources of fluctuations in the housing market.
JEL Classification
D80, R31
Recommended Citation
DeVylder-Gaidish, J.M. (2024). Relative impact of economic policy uncertainty and mortgage rates on the supply of new homes for sale in the United States. Jack Welch College of Business & Technology dissertation, Sacred Heart University, Fairfield CT. Retrieved from https://digitalcommons.sacredheart.edu/wcob_theses/45
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Included in
Business Administration, Management, and Operations Commons, Corporate Finance Commons, Finance and Financial Management Commons
Comments
Submitted as partial fulfillment of the requirements for the degree of Doctor of Business Administration in Finance Sacred Heart University, Jack Welch College of Business and Technology, Sacred Heart University
DISSERTATION Number DBA05/2024