Aggregate housing demand shocks are an important source of house price fluctuations in the standard macroeconomic …-rent puzzle"). We build a tractable heterogeneous-agent model that provides a microeconomic foundation for housing demand shocks …

The notion that business cycles are driven by demand shocks is subtle. I first review some of the conceptual and … allows demand shocks to generate realistic business cycles even when nominal rigidity is absent or undone by appropriate …

pricing in which demand shocks play a central role. These shocks give rise to valuation risk that allows the model to account …, arises because these models load all uncertainty onto the supply side of the economy. We propose a simple theory of asset …

We propose a theory of indebted demand, capturing the idea that large debt burdens by households and governments lower … aggregate demand, and thus natural interest rates. At the core of the theory is the simple yet under-appreciated observation … lead to indebted household demand, pushing down natural interest rates. Moreover, popular expansionary policies--such as …

other products by an unusually low elasticity of demand with respect to product failure. While consumers in other markets … potential cures accumulated over time. Because no one was ever cured and consumers possessed a highly inelastic demand with … respect to product failures, demand was unrelenting. In short, patent medicines flourished not despite their dubious medicinal …

. Equilibrium price dispersion is derived in a setting with costly capacity and demand uncertainty where different fares can be … find evidence that strongly supports both predictions of the models. After controlling for the effect of aggregate demand …

regarding aggregate productivity. The shock to this public signal, or "news shock," has the features of an aggregate demand … employment. A calibrated version of the model is able to generate realistic amounts of short-run volatility due to demand shocks …

We investigate the effects of wildfires on risk perceptions by quantifying the impact of severe wildfires on housing … between locations that vary in their perceived level of fire risk. The model allows us to infer the evolution of risk … analysis is based on a multi-dimensional characterization of the potential linkages between fire events and risk perceptions …

This paper contains a detailed treatment of the human capital model of the demand for health. Theoretical predictions …