This paper shows that rising real estate prices reduce industry productivity, because they lead to a reallocation of capital and labor towards inefficient firms. I establish that the rise in real estate value during the US housing boom relaxes firms' financial constraints. Companies borrow...

In this paper, we examine the impact of changes in the federal tax treatment of local property taxes stemming from the implementation of the Tax Cuts and Jobs Act (TCJA) in January 2018 on local housing markets. Using county-level house price information and IRS tax data, we find that capping...

We consider the effect of expertise on economic transactions, with a particular focus on the real estate market. We show that even as listing information becomes increasingly accessible on real estate aggregation websites, realtor expertise remains important in securing a desirable sale price....

This chapter surveys the literature on housing in macroeconomics. We first collect facts on house prices and quantities in both the time series and the cross section of households and housing markets. We then present a theoretical model of frictional housing markets with heterogeneous agents...

This paper examines pairwise intercity price-volume dynamics in China using novel daily transaction prices and volume dataset from 32 Chinese cities. Despite geographical disparity and time variations, the volume-volume dynamic relationship plays a noticeably more significant role than...

Tests of the dividend pricing hypothesis (DPH) applied to housing have studied the trade-off between the capitalization rate (CAP rate) and subsequent house price appreciation. Even allowing for the fact that actual appreciation does not equal expected appreciation, evidence for the DPH is not...