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The consumer search literature mostly considers independently distributed products. In contrast, I study a model of directed search with infinitely many products whose valuations are correlated through shared attributes. I propose a tractable, systematic, history-dependent scoring system based...
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The paper presents a model of housing and credit cycles featuring distorted beliefs and comovement and mutual …) development in house prices fuels optimism (pessimism) and credit expansion (contraction), which in turn boost (dampen) housing …
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two channels: the unobserved quality of the housing unit, and the market power of the housing unit relative to competing … mistimes the stabilization of housing prices following the Great Recession. Similar, but smaller effects, are observed for the …
Persistent link: https://www.econbiz.de/10012850954
House prices have inertia, which may be because housing-market participants need time to recognize long booms and … recessions. Within a dynamic stochastic general-equilibrium model with markets for housing and defaultable mortgages, I consider …
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