The critical role of house prices for macroeconomic and financial stability is widely acknowl-edged since the global financial crisis. While house prices showed spectacular increases and even a bubble-like behaviour in the pre-crisis years, their fall thereafter was accompanied by deep...

The objective of this thesis is to examine the implications of different government financial policies on the real sector of the economy. For this purpose we develop two overlapping-generations models. The first one allows us to evaluate the performance of the economy when debt is managed with...