This paper investigates whether housing collateral is important to the business cycle in China. We develop two models …, one without housing collateral as benchmark and one variant allowing for it. Indirect Inference procedure tests these two … models' compatibility with the data. We find that the benchmark model passes the test, while the collateral model is strongly …

intensity relative to personal response in waves 1 and 2 caused much lower economic costs with no discernible e§ect on …