Menno, Dominik; Oliviero, Tommaso - Centro Studi di Economia e Finanza (CSEF) - 2014
This paper quantifies the welfare effects of the aggregate house price collapse during the U.S. Great Recession for leveraged and un-leveraged U.S. households. We calibrate a dynamic general equilibrium model to the U.S. economy and simulate the 2007-2009 Great Recession as a contemporaneous...