Iacoviello, Matteo; Pavan, Marina - 2009
of housing adjustment. In the time-series dimension, the model accounts for the procyclicality and volatility of housing … following question: what are the consequences for aggregate volatility of an increase in household income and a decrease in …. Quantitatively, this model can explain: (1) 45 percent of the reduction in the volatility of household investment; (2) the decline in …