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Business cycle implications of mortgage spreads

Walentin, Karl - 2014 - September 2013 (Updated March 2014)

How do aggregate quantities at the business cycle frequency respond to shocks to the spread between residential mortgage rates and government bonds? Using a structural VAR approach, we find that mortgage spread shocks impact the real economy by both economically and statistically significant...

Persistent link: https://www.econbiz.de/10010202977

The Effects of Housing Adjustment Costs on Consumption Dynamics

Kay, Benjamin - 2016

simulations match aggregate consumption dynamics better than alternative frictionless models, even those with homes as assets. The …

Persistent link: https://www.econbiz.de/10013007406

The Cyclical Dynamics of Illiquid Housing, Debt, and Foreclosures

Hedlund, Aaron - 2015

This paper quantitatively accounts for the cyclical dynamics of key macroeconomic housing and mortgage market variables … using a tractable, search-theoretic model of housing with equilibrium mortgage default. To explain these dynamics, the model … show that implementing such a reform would reduce foreclosures and dampen housing dynamics …

Persistent link: https://www.econbiz.de/10013028614

Housing over Time and over the Life Cycle : A Structural Estimation

Li, Wenli - 2019

-sectional and time-series household wealth and housing profiles from the Panel Study of Income Dynamics quite well and suggests an …

Persistent link: https://www.econbiz.de/10012906249

Behind the Great Recession : job search and housing decisions

Rendón, Sílvio; Quella, Núria - 2013

In this paper we analyze a mechanism that is particularly relevant to the workings of the Great Recession: we explain how easier home financing and higher homeownership rates increase unemployment rates. To this purpose we build a model of job search with liquid wealth accumulation and...

Persistent link: https://www.econbiz.de/10010222189

Housing habits and their implications for life-cycle consumption and investment

Kraft, Holger; Munk, Claus; Wagner, Sebastian - 2015

We set up and solve a rich life-cycle model of household decisions involving consumption of both perishable goods and housing services, stochastic and unspanned labor income, stochastic house prices, home renting and owning, stock investments, and portfolio constraints. The model features habit...

Persistent link: https://www.econbiz.de/10010482078

Housing Over Time and Over the Life Cycle : A Structural Estimation

Li, Wenli - 2015

the cross-sectional and time-series household wealth and housing profiles from the Panel Study of Income Dynamics (1984 to …

Persistent link: https://www.econbiz.de/10013017413

Housing Over Time and Over the Life Cycle : A Structural Estimation

Li, Wenli - 2015

-series household wealth and housing profiles from the Panel Study of Income Dynamics (1984 to 2005) reasonably well and suggests an …

Persistent link: https://www.econbiz.de/10013029666

Household consumption and the housing net worth channel in Ireland

Cronin, David; McQuinn, Kieran - 2021

The performance of the Irish economy over the period 2002-2019 varied considerably, with a credit-led boom up to 2007 being followed by a sharp fall in economic activity and house prices in the following five years. This provides a valuable sample for investigating the relevance of the housing...

Persistent link: https://www.econbiz.de/10012694805

Personal bankruptcy as a real option

Zhu, Guozhong; Mikhed, Vyacheslav; Scholnick, Barry - 2019

We provide a novel explanation to the longstanding puzzle of the “missing bankruptcy filings.” Even though a household with a negative net worth will receive contemporaneous benefit from bankruptcy, there may be greater insurance value from delaying the filing. Household bankruptcy is thus...

Persistent link: https://www.econbiz.de/10012197793