Similar Search Results

Should monetary policy lean against housing market booms?

Alpanda, Sami; Ueberfeldt, Alexander - 2016

Should monetary policy lean against housing market booms? We approach this question using a small-scale, regime-switching New Keynesian model, where housing market crashes arrive with a logit probability that depends on the level of household debt. This crisis regime is characterized by an...

Persistent link: https://www.econbiz.de/10011454083

Fooled by search : housing prices, turnover and bubbles

Peterson, Brian M. - 2012

This paper develops and estimates a model to explain the behaviour of house prices in the United States. The main finding is that over 70% of the increase in house prices relative to trend during the increase of house prices in the United States from 1995 to 2006 can be explained by a pricing...

Persistent link: https://www.econbiz.de/10009487808

Booms and busts in house prices explained by constraints in housing supply

Bulusu, Narayan; Duarte, Jefferson; Vergara-Alert, Carles - 2013

We study the importance of supply constraints in explaining the heterogeneity in house price cycles across geographies in the United States. Comparing the equilibrium house price generated with and without supply constraints in a representative-agent model under irreversibility of housing...

Persistent link: https://www.econbiz.de/10009751696

Housing market dynamics and macroprudential policy

Bruneau, Gabriel; Christensen, Ian; Meh, Césaire Assah - 2016

We perform an analysis to determine how well the introduction of a countercyclical loanto- value (LTV) ratio can reduce household indebtedness and housing price fluctuations compared with a monetary policy rule augmented with house price inflation. To this end, we construct a New Keynesian model...

Persistent link: https://www.econbiz.de/10011517031

Consumption, housing collateral, and the Canadian business cycle

Christensen, Ian; Corrigan, Paul; Mendicino, Caterina; … - 2009

Using Bayesian methods, we estimate a small open economy model in which consumers face limits to credit determined by the value of their housing stock. The purpose of this paper is to quantify the role of collateralized household debt in the Canadian business cycle. Our findings show that the...

Persistent link: https://www.econbiz.de/10003933334

A model of housing boom and bust in a small open economy

Tomura, Hajime (contributor) - 2008

This paper considers a dynamic stochastic general equilibrium model for a small open economy and finds that an improvement in the terms of trade causes a housing boom-bust cycle if the duration of the improvement is uncertain. It is shown that as the economy has better access to the...

Persistent link: https://www.econbiz.de/10003711674

Examining the impact of home purchase restrictions on China's housing market

Lu, Zhentong; Zhang, Sisi; Hong, Jian - 2021 - Last updated: April 7, 2021

This paper studies the impact of home purchase restrictions on China's housing market. We estimate a structural model of household preference for housing, real estate developers' pricing decisions, and equilibrium market outcome in five large cities. By comparing the estimation results from pre-...

Persistent link: https://www.econbiz.de/10012499509

Can the common-factor hypothesis explain the observed housing wealth effect?

Bulusu, Narayan; Duarte, Jefferson; Vergara-Alert, Carles - 2016

The common-factor hypothesis is one possible explanation for the housing wealth effect. Under this hypothesis, house price appreciation is related to changes in consumption as long as the available proxies for the common driver of housing and non-housing demand are noisy and housing supply is...

Persistent link: https://www.econbiz.de/10011576390

The rise of non-regulated financial intermediaries in the housing sector and its macroeconomic implications

Desgagnés, Hélène - 2017

I examine the impact of non-regulated lenders in the mortgage market using a dynamic stochastic general equilibrium (DSGE) model. My model features two types of financial intermediaries that differ in three ways: (i) only regulated intermediaries face a capital requirement, (ii) non-regulated...

Persistent link: https://www.econbiz.de/10011777922

Interest on cash, fundamental value process and bubble formation on experimental asset markets

Giusti, Giovanni; Jiang, Janet Hua; Xu, Yiping - 2014

We study the formation of price bubbles on experimental asset markets where cash earns interest. There are two main … conclusions. The first is that paying positive interest on cash is ineffective in diminishing bubbles through the reducing …-active-participation channel. The second is that the fundamental value generating process plays a critical role in the formation of asset bubbles …

Persistent link: https://www.econbiz.de/10010350019

1
2
3
4
5
6
7
8
9
10
Next
Last