Working Paper

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27-09-2022

Working Paper: Opportunities and risks in the residential sector during a green transition: House prices, energy renovations and rising energy prices

Higher energy prices reduce sales prices of houses without district heating in some rural areas. Most energy renovations do not increase sales prices beyond their costs. Those that do have little impact on CO2 emissions, are cheap, and are typically only possible for houses located in and around towns and mid-sized cities and more generally in the geographically more central parts of Denmark.

16-09-2022

Working Paper: What do negative policy rate economies have in common?

Five economies, Denmark, the euro area, Switzerland, Sweden and Japan, have conducted negative interest rate policies. In this paper, we document that these economies have high levels of public as well as private savings, not matched by high investments, relative to other high-income non-NIRP OECD economies.

11-08-2022

Working Paper: Segmentation of the Housing Market with Internet Data: Evidence from Denmark

In this paper, we introduce a novel tool for housing market analysis developed on the basis of online listings data from the largest real estate listing site in Denmark. The tool uses a combination of machine learning techniques to provide a data-driven segmentation of the housing market into meaningful submarkets that differ from administrative classifications. We demonstrate how the tool can support monitoring and research of underlying housing market developments in Denmark.

24-05-2022

Working Paper: Wage Effects of Labor Market Tightness

In this Working Paper, I examine to what extent labor shortage leads to higher wages. If the shortage of the occupations demanded by a firm increases, wages will increase, too. The wages increases are, however, relatively modest.

13-01-2022

Working Paper: Job Retention during the Covid-19 Pandemic

This paper examines the labor market effects of the Danish wage compensation scheme for employees during the covid-19 pandemic. The scheme prevented job losses, especially for low-tenured workers, but led to a decline in furloughed workers’ labor income. Labor market mobility was basically unaffected.

20-12-2021

Working Paper: Monetary and Fiscal Policies in Times of Large Debt Unity is Strength

We study the implications of a coordinated fiscal and monetary strategy aiming at creating a controlled rise of inflation to wear away a targeted fraction of debt. Under this strategy, the fiscal authority introduces an emergency budget with no provisions on how it will be balanced, while the monetary authority tolerates a temporary increase in inflation to accommodate the emergency budget.

09-12-2021

Working Paper: House Prices, Increasing Returns, and the Effects of Government Spending Shocks

We report new regional evidence indicating that U.S. house prices increase after positive shocks to fiscal spending. In sharp contrast to this, house prices fall in conventional DSGE models. We construct a model featuring endogenous firm entry and taste for variety, which can generate a positive response of house prices to fiscal spending.

30-11-2021

Working Paper: Firm financing and public support measures during the pandemic

This paper studies Danish firms' debt financing decisions during covid-19 with a focus on the impact of government support measures. Credit growth has been modest during the pandemic. Public liquidity measures such as deferred tax and VAT payments served as a substitute for more traditional debt funding sources.

02-11-2021

Working Paper: Measuring household interest-rate sensitivity in Denmark

We evaluate homeowners’ interest-rate sensitivity on cash flows and balance sheets of a 1 percentage point increase in interest rates. Overall, the interest-rate sensitivity is limited. However, for a subgroup of homeowners, an increase in interest rates will have a substantial effect on their cash flows and balance sheets.

27-10-2021

Working Paper: Corporate Investment and Cash Holdings under Financing Shocks

I analyze to which extent corporate cash holdings protect firms from the adverse consequences of shocks to their borrowing costs. Despite firms self-insuring against spikes in their borrowing costs by holding cash, an aggregate shock to borrowing conditions similar to that seen during the Global Financial Crisis can significantly contract aggregate investment, especially for firms with low cash holdings.