Under the property of fungibility, all components of wealth are equal. Thus (assuming no transaction cost, liquidity constraints, and so on) a change in current income, liquid wealth and future income should lead to similar a response. However, there is ample empirical evidence indicating that...

Using a life-cycle model and a representative sample of households, we analyze the extent to which using home equity leads to (heterogeneity in) welfare gains over the life cycle. The most policy-feasible option to borrow against 50% of home equity over the life cycle leads to median (average)...

The equity premium is a key parameter in asset allocation policies. There is a vigorous debate in the literature regarding the actual measurement of the equity premium, its size and the determinants of its variation. This study aims to take stock of this literature by means of a meta-analysis....

Increasing labour market flexibility is at the top of the European agenda. A new and challenging view is a lack of mobility in the labour market may arise from rigidities in the housing market. The research in this book has been inspired by the intriguing hypothesis put forward by Andrew Oswald...

This paper examines the impact of cycles on long-term growth in the presence of entry and exit of firms. It is argued that, whereas mild fluctuations may be beneficial for growth, more severe fluctuations will be detrimental for growth. The essential point is whether recessions go beyond the...

Increasing labour market flexibility is at the top of the European agenda. A new and challenging view is that lack of mobility in the labour market may arise from rigidities in the housing market. This book brings together top European economists to analyse the interaction between housing and...