Similar Search Results

Garriga, Carlos; Kydland, Finn E.; Šustek, Roman - 2015

Mortgages are prime examples of long-term nominal loans. As a result, under incomplete asset markets, monetary policy can affect household decisions through the cost of new mortgage borrowing and the value of payments on outstanding debt. These channels are distinct from the transmission through...

Persistent link: https://www.econbiz.de/10011306278

Mortgages and Monetary Policy

Garriga, Carlos - 2019

Mortgages are long-term loans with nominal payments. Consequently, under incomplete asset markets, monetary policy can affect housing investment and the economy through the cost of new mortgage borrowing and real payments on outstanding debt. These channels, distinct from traditional real rate...

Persistent link: https://www.econbiz.de/10012903321

Mortgages and Monetary Policy

Garriga, Carlos - 2013

Mortgage loans are a striking example of a persistent nominal rigidity. As a result, under incomplete markets, monetary policy affects decisions through the cost of new mortgage borrowing and the value of payments on outstanding debt. Observed debt levels and payment to income ratios suggest the...

Persistent link: https://www.econbiz.de/10013072073

Nominal Rigidities in Debt and Product Markets

Garriga, Carlos - 2019

Standard models used for monetary policy analysis rely on sticky prices. Recently, the literature started to explore also nominal debt contracts. Focusing on mortgages, this paper compares the two channels of transmission within a common framework. The sticky price channel is dominant when...

Persistent link: https://www.econbiz.de/10013210442

The high sensitivity of employment to agency costs : the relevance of wage rigidity

Hristov, Atanas - 2010

cycles. Economic Theory, 12(3):583-597]. The aim of this article is to show that financing constraints can substantially … bargaining solution financing constraints increase substantially the volatility of wages, and in turn, amplification for the …

Persistent link: https://www.econbiz.de/10008663379

A high resolution agent‐based model of the Hungarian housing market

Mérő, Bence; Borsos, András; Hosszú, Zsuzsanna; … - 2022

standard utility maximiza‐ tion theory. Additionally, we have also implemented demographic trends, including childbearing … policies as well as for the assessment of exogenous shock scenarios. Initiating the model simulation from 2018, it managed to …

Persistent link: https://www.econbiz.de/10013402087

Household leverage, housing markets, and macroeconomic fluctuations

Ngo, Phuong - In: Journal of macroeconomics 44 (2015), pp. 191-207

Persistent link: https://www.econbiz.de/10011570623

Housing and debt over the life cycle and over the business cycle

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 …

Persistent link: https://www.econbiz.de/10003906135

Endogenous Growth, Monetary Shocks and Nominal Rigidities

Annicchiarico, Barbara; Pelloni, Alessandra; Rossi, Lorenza - 2010

: (i) monetary volatility negatively affects long-run growth; (ii) the relation between nominal volatility and growth … increases the negative effect of nominal volatility on mean growth. …

Persistent link: https://www.econbiz.de/10010343890

Expectations during the U.S. housing boom : inferring beliefs from actions

Ben-David, Itzhak; Towbin, Pascal; Weber, Sebastian - 2019

We infer the role of price expectations in forming the U.S. housing boom in the early-2000s from examining housing inventories. We use a reduced form model to show that agents invest in vacant homes when they anticipate prices will increase. Empirically, vacancy can discriminate between price...

Persistent link: https://www.econbiz.de/10012104647