ORTALO-MAGNÉ, FRANÇOIS; RADY, SVEN - In: Review of Economic Studies 73 (2006) 2, pp. 459-485
We propose a life-cycle model of the housing market with a property ladder and a credit constraint. We focus on equilibria that replicate the facts that credit constraints delay some households' first home purchase and force other households to buy a home smaller than they would like. The model...