Davis, Morris; Heathcote, Jonathan - Federal Reserve Board (Board of Governors of the … - 2004
Housing and the Business Cycle
Morris Davis
Federal Reserve Board
Jonathan Heathcote
∗
Georgetown University
November 1 … twice as volatile as business in-
vestment. Third, residential investment leads the business cycle whereas non … standard deviation
of residential investment (at business cycle frequencies) is twice that of non-residential
investment, and …