2010, employment and value added in construction are projected to halve as peak housing starts are completed. The … authorities have launched efforts to help limit foreclosures and to activate the underdeveloped rental market. In the medium term …, housing market cyclicality could be reduced by fading out generous home ownership incentives. …

with search in the housing market and defaultable long-term mortgages. In equilibrium, both sellers' asking prices and time …-to-sell increase with the relative size of their outstanding mortgages. In turn, the liquidity of the housing market associated with … time-to-sell determines the mortgage standards of competitive lenders, measured by the maximum loan-to-value (LTV) ratio …

risk in the mortgage market raises the default rate and spreads to the rest of the economy, creating a recession. In our …. This policy is successful in stabilizing the mortgage market and makes all agents better off. …This paper models the housing sector, mortgages and endogenous default in a DSGE setting with nominal and real …