Dorofeenko, Viktor; Lee, Gabriel S.; Salyer, Kevin Duff - 2010
This paper analyzes the role of uncertainty in a multi-sector housing model with financial frictions. We include time … varying uncertainty (i.e. risk shocks) in the technology shocks that affect housing production. The analysis demonstrates that … countercyclical behavior of risk premia on loans to the housing sector. -- agency costs ; credit channel ; time-varying uncertainty …