Residential concentration dampens monetary policy transmission
Abstract: This paper analyzes how the spatial structure of housing affects monetary policy transmission. I integrate spatial structure into a monetary business cycle model with housing. Spatial structure matters economically through households' location preferences and residential externalities. These two features are reflected in two measures of residential concentration. Higher residential concentration dampens consumption responses to interest rate changes. The dampening channels operate through housing demand. In an empirical analysis, I create model-consistent measures of residential concentration for US and Eurozone regions, using geospatial data based on satellite imagery. I empirically validate the model's predictions in a state-dependent local projections framework. My paper identifies residential concentration as a fundamental determinant of monetary policy transmission.
Spatial distribution of housing liquidity
Abstract: This paper examines the relationship between location, liquidity, and prices in housing markets. We construct spatial datasets for German and US cities and show that liquidity and prices decline with distance to the city center. To rationalize these patterns, we develop a spatial model of housing search. Location preferences concentrate buyers in central areas, generating tighter markets that are more liquid and command higher prices. Counterfactuals show that increasing search efficiency raises welfare and prices, especially in peripheral areas. Our findings highlight the importance of demand-side preferences and market tightness for understanding liquidity and asset prices.
Spatial macroprudential policy
With Francisco Amaral and Stefanie Huber. Work in progress.
Abstract: This paper examines how regional variation in mortgage leverage affects the effectiveness of macroprudential policies. Using granular data from both the US and Germany, we establish two novel stylized facts: (1) loan-to-value (LTV) ratios are significantly lower in large, expensive urban areas; and (2) loan-to-income (LTI) ratios are significantly higher in the same regions — locations that typically experience stronger housing booms. These regional differences in leverage far exceed cross-regional variation in other credit terms such as interest rates or credit scores. We argue that this spatial heterogeneity limits the effectiveness of nationwide regulatory caps on leverage.
nightlightstats: An R package for analyzing nighttime light statistics
With Jakob Miethe. Available on GitHub.