This paper uses an assignment model to understand the cross section of house prices within a metro area. Movers' demand for housing is derived from a lifecycle problem with credit market frictions. Equilibrium house prices adjust to assign houses that differ by quality to movers who differ by...

This paper studies a search model of the housing market to show how heterogeneity of beliefs affect house prices and trading volume.

We study a quantitative asset pricing model with a continuum of house types. Equilibrium house prices match the inventory of available houses and housing demand from households that differ by age, income, wealth, and access to credit markets. The shape of the house price function reflects...

This paper implements a structural model of the yield curve with data on nominal positions and survey forecasts. Bond prices are characterized in terms of investors' current portfolio holdings as well as their subjective beliefs about future bond payoffs. Risk premia measured by an...

Movements in the yield curve are decomposed into changes in bond supply, income and the term structure of inflation expectations.