Much of the literature on the effect of housing wealth on consumption has been embedded in a simple life-cycle model in … which housing price changes work as a wealth effect. In such models, windfall gains in housing always lead to positive … changes in consumption. However, this might constitute a fallacy of composition. Such models ignore that changes in housing …

Much of the literature on the effect of housing wealth on consumption has been embedded in a simple life-cycle model in … which housing price changes work as a "wealth effect". In such models, windfall gains in housing always lead to positive … changes in consumption. However, this might be a fallacy of composition. Such models ignore that changes in housing wealth …

This paper examines the welfare cost of rare housing disasters characterized by large drops in house prices. I … construct an overlapping generations general equilibrium model with recursive preferences and housing disaster shocks. The … likelihood and magnitude of housing disasters are inferred from historic housing market experiences in the OECD. The model shows …

accelerator of house prices and finds that over the period 2000-2008 the value of all housing transactions exceeded the aggregate … net growth of mortgages by 50%, indicating substantial equity financing. In one year, 2008, the value of aggregate housing …

the United States, housing collateral effects on consumption are absent. Given credit conditions, rising house prices … mostly explained by movements in incomes, housing supply, mortgage interest rates and credit conditions, suggesting that the …

moderate house price differences in the UK. We disaggregate both the household sector and the housing stock in a two …-region DSGE model with out of sync subnational housing markets and compare four policy types: standard monetary policy, leaning …

union. By employing a calibrated two-country New Keynesian DSGE model with collateral constraints tied to housing values, we … be an important driver of an asymmetric development in housing markets and real economic activity of member states. Our …