Goswami, Gautam; Tan, Sinan; Waisman, Maya - In: Journal of Financial Stability 15 (2014) C, pp. 76-90
This paper establishes baseline valuations for housing assets using rent cash flows in 22 regions of the U.S. in a Lucas (1978) framework. The model matches the unconditional averages of the price–rent ratios from 1978 to 2012 quite well; however, the model valuations after 2002 are well below...
