We study a model of portfolio choice with housing in which house price is predictable. Housing is illiquid in that a transaction cost must be paid when the house is sold. We show that two state variables aff ect the agent's decisions: (i) the wealth-houseratio, and (ii) the time-varying mean...

Households systematically overvalue or undervalue their houses. We compute house value misperception as the difference between self-reported and market house values. Misperception is sizable, countercyclical, and persistent. We find that a 1 percent increase in house overvaluation results, on...

Households systematically overvalue or undervalue their houses. We compute house value misperception as the difference between self-reported and market house values. Misperception is sizable, countercyclical, and persistent. We find that a 1 percent increase in house overvaluation results, on...

This research analyzes the effects of recent housing price appreciation on aggregate welfare. It generalizes the results of Bajari et al (2005), who find that in a credit unconstrained economy with exogenous housing prices there is no effect of housing price appreciation on aggregate welfare....

A dramatic decline in the maximum loan amount eligible for FHA mortgage insurance in the Salt Lake City metropolitan statistical area between 2013 and 2014 provides a natural experiment in the impact of borrowing constraints on housing decisions. Using a differences-in-differences design within...

During the last three decades, the household has become the focus of a wide range of socio-demographic processes, including the destabilization of traditional patterns of marriage, cohabitation, and divorce; the growing fluidity of ties of kin and friendship; and increasingly complex transitions...

Environmental, climatic and economic human influences contribute to the problem of water scarcity in arid and semi-arid areas of the world, particularly in the less developed countries. This has impeded economic development in these regions. Thus, the call is for better methodological approaches...

The paper studies the multidimensional aspects of poverty and living conditions in Ghana. The aim is to fill the vacuum that has been left by traditional uni-dimensional measures of deprivation based on poverty lines, exclusively estimated on the basis of monetary variables such as income or...

This research investigates the Australian rental sector during the second year of the COVID-19 pandemic and considers priorities for governments; tenant experiences and reflections on the effectiveness of assistance and interventions; changing tenant aspirations; and the priorities for emerging...

Systemic risk must include the housing market, though economists have not generally focused on it. We begin construction of an agent-based model of the housing market with individual data from Washington, DC. Twenty years of success with agent-based models of mortgage prepayments give us hope...