Paper by Agnello and Sousa

Agnello and Sousa have written a paper on the impact of fiscal policy on stock and housing markets. See

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1803221

The authors argue the following: “Using a panel of ten industrialized countries, we show that a positive fiscal shock has a negative impact in both stock and housing prices. However, while stock prices immediately adjust to the shock and the effect of fiscal policy is temporary, housing prices gradually and persistently fall.”