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Housing and Macroeconomics

In: Handbook of Macroeconomics

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  • Piazzesi, M.
  • Schneider, M.

Abstract

This chapter surveys the literature on housing in macroeconomics. We first collect facts on house prices and quantities in both the time series and the cross section of households and housing markets. We then present a theoretical model of frictional housing markets with heterogeneous agents that nests or provides background for many studies. Finally, we describe quantitative results obtained during the last 15 years on household behavior, business cycle dynamics, and asset pricing, as well as boom bust episodes.

Suggested Citation

  • Piazzesi, M. & Schneider, M., 2016. "Housing and Macroeconomics," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 1547-1640, Elsevier.
    • Handle: RePEc:eee:macchp:v2-1547
    DOI: 10.1016/bs.hesmac.2016.06.003
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    More about this item

    Keywords

    Booms and busts in housing markets; land prices; market segmentation; mortgages; residential investment; expectations; collateral constraints; illiquidity; transaction costs; R2; R3; E2; E3; E4; G1;
    All these keywords.

    JEL classification:

    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • G1 - Financial Economics - - General Financial Markets

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    Access and download statistics

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