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We investigate an unexplored link between the US mortgage spread and business cycle and house price fluctuations in … emerging market economies (EMEs). An increase in the US mortgage spread leads to substantially lower output, investment … financial channel is the main transmission mechanism through which US mortgage spread shocks affect business and house price …
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1 Abstract -- 2 Introduction -- 3 Chapter I: Literature on the subject of excess volatility -- 4 Chapter II: Excess volatility beyond discount rates -- 5 Chapter III: Evidence of excess volatility in the Eurozone market -- 6 Conclusions.
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matches the wealth distribution; the age profiles of consumption, homeownership, and mortgage debt; and data on the frequency …
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This paper presents a dynamic theory of housing market fluctuations. It develops a life-cycle model where households … are heterogeneous with respect to income and preferences, and mortgage lending is restricted by a down-payment requirement …
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