publications new

 

Abstract

In this article, we develop an empirical framework to shwo the importance of money during the Great Moderation, while accounting for the fact that monetary policy was exlusively conducted through interest rates. We estimate the impulse response functions and forecast error variance decomposition derived from a structural VAR with a laest absolute shrinkage and selection operator-based lag selection. The variance decomposition suggests that a substantial component of macroeconomic variation has been driven by shocks to the money market, which were not only unintended by the Federal Reserve, but worse passed unnoticed allowing those shocks to accumlate over time.

Abstract

The effectiveness of building energy codes is studied taking a long-run perspective. We focus on regulation´s impact on energy demand in high-end and low quality residences, i.e. the diffusion and the entry of "green" buildings in the housing market. We develop a measure for regulation intensity and apply this to a panel-error-correction regression model for energy requirements of a large sample of German apartment houses built between 1950-2005. We show that regulation is effective in saving energy. In particular, regulation pushes investors in the low quality housing market segment towards the technological frontier. Indirectly, it also affects the high-end housing market segment.