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Property Markets and Policies in an Intertemporal General Equilibrium Model

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  • K K Tang

Abstract

This paper presents a theoretical simulation model to examine the interaction between property markets and the rest of the economy. The model is a rational expectation, intertemporal general equilibrium model, with multiple sectors and real estate markets. The model emphasizes the interdependence between sectors as well as the government’s role in the property markets. It is demonstrated that a resource boom in a durable nontradable sector can improve the current account balance of the home economy in the short run. Secondly, when there is production interdependency between sectors, resource booms in one sector does not necessarily cause contraction in other sectors.

Suggested Citation

  • K K Tang, 1998. "Property Markets and Policies in an Intertemporal General Equilibrium Model," Departmental Working Papers 1999-01, The Australian National University, Arndt-Corden Department of Economics, revised Jan 1999.
    • Handle: RePEc:pas:papers:1999-01
    Note: Length (pages): 36 pages
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    File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp1999/Tang%201999.01.pdf
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