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This Paper presents a dynamic theory of housing market fluctuations. It develops a life-cycle model where households are heterogeneous with respect to income and preferences, and mortgage lending is restricted by a down-payment requirement. The market interaction of young credit-constrained...
Persistent link: https://www.econbiz.de/10005498172
We propose a new approach to imposing economic constraints on time-series forecasts of the equity premium. Economic constraints are used to modify the posterior distribution of the parameters of the predictive return regression in a way that better allows the model to learn from the data. We...
Persistent link: https://www.econbiz.de/10011083895
about mean payoffs, price bubbles arise without collateralisation, which may discipline prices as pessimists demand higher …
Persistent link: https://www.econbiz.de/10011084220
The efficient markets hypothesis implies that, in the presence of rational investors, bubbles cannot develop. We …
Persistent link: https://www.econbiz.de/10005136583
the conditions under which housing bubbles can emerge. In such equilibria, the total housing stock is held by owners that … constraints is more prone to bubbles which, in turn, tend to have a larger size but are less fragile in face of fund …-draining shocks. Our environment also allows for pure bubbles on useless assets. We find that multiple equilibria in which the economy …
Persistent link: https://www.econbiz.de/10005504239
The 1991 Italian Survey of Household Income and Wealth contains detailed information on how respondents acquired their main residence and any other real estate. This information is used to estimate the impact of inter vivos transfers on the saving period required to purchase a house and on the...
Persistent link: https://www.econbiz.de/10005504649
This paper investigates the relationship between housing prices and the quality of public schools in the Australian Capital Territory. To disentangle the effects of schools and other neighbourhood characteristics on the value of residential properties, we compare sale prices of homes on either...
Persistent link: https://www.econbiz.de/10004971390
Chetty and Szeidl (2012) propose to estimate the effect of housing on portfolio choice by distinguishing between the effect of mortgage debt and the effect of home equity and by endogenizing these two variables. When replicating their study with French data, we obtain similar qualitative...
Persistent link: https://www.econbiz.de/10011083391
land price data. Our preferred estimate, which handles a number of estimation concerns, stands at 0.041. Our approach also …
Persistent link: https://www.econbiz.de/10011083617
This paper provides a method to single out customer-based discrimination in the housing market. We build a matching model with ethnic externalities where landlords differ in the number of housing units they own within the same building. Multiple-dwelling landlords discriminate more often than...
Persistent link: https://www.econbiz.de/10011083618