—both qualitatively and quantitatively—the large low-frequency changes in housing price trends. In particular, the model shows how housing … governs the relationship between productivity growth and home price appreciation. Combined with a realistic model of learning … about the productivity process, the model is able to capture the medium- and low-frequency fluctuations of both price and …

uncertainty, a stochastic version of the Ramsey model with livestock as the single asset. We use the estimation results in … the capital stock (livestock) to its steady state value is - as expected - strongly equalising: the coefficient of … variation (across households) of livestock ownership falls from 78% to 6%. Secondly, when we allow for household fixed effects …