Fundamentals behind house prices
We build a two-sector neoclassical growth model with housing to reveal a set of fundamental forces behind the movement of house prices. The relative price of house exhibits secular growth that is determined by sectoral technological progress and factor intensities. Off the balanced growth path, it comoves negatively with the real rate of interest.
Year of publication: |
2010
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---|---|
Authors: | Li, Bin ; Zeng, Zhixiong |
Published in: |
Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 108.2010, 2, p. 205-207
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Publisher: |
Elsevier |
Keywords: | House prices Real interest rate Two-sector growth |
Saved in:
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