time-series, the model matches the procyclicality and volatility of housing investment, and the procyclicality of mortgage … and lower downpayments, and find that these two changes can explain, in the model and in the data, the reduced volatility … of housing investment, the reduced procyclicality of mortgage debt, and a small fraction of the reduced volatility of GDP …

of housing adjustment. In the time-series dimension, the model accounts for the pro-cyclicality and volatility of housing … following question: what are the consequences for aggregate volatility of an increase in household income and a decrease in down … can explain: (1) 45 percent of the reduction in the volatility of household investment; (2) the decline in the correlation …

model two shocks are well suited to replicate the subprime crisis and the Great Recession: the mortgage risk shock and the … housing demand shock. Next we use our estimated model to evaluate a policy that reduces the principal of underwater mortgages …

business cycle. Second, a shock that moves the land price is capable of generating large volatility in unemployment. Our …

fluctuations by buying their home prior to the realization of the population shock; newcomers cannot. As a result, poorer natives …

fluctuations by buying their home prior to the realization of the population shock; newcomers cannot. As a result, poorer natives …