Download or read book Essays in Macroeconomics and Housing written by Joao Bernardo Neto Aurelio Duarte and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Housing and Macroeconomics written by Wonmun Shin and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Therefore, this chapter argues that higher house price volatility in emerging countries leads to their excess consumption volatility.

Download or read book Essays on Housing and Macroeconomics written by Guozhong Zhu and published by . This book was released on 2009 with total page 234 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation studies households' housing decision in the presence of income risks, and its implication on within-cohort income/consumption inequality and the nature of income risks facing households. It is composed of three chapters. The first chapter presents evidence from Panel Study of Income Dynamics (PSID) and Consumer Expenditure Survey (PSID) that housing consumption and housing investment are negatively affected by income risks. Within a household portfolio choice model, the negative effect can be attributed to the illiquidity of housing investment and the positive correlation between house price and income. The second chapter provides empirical evidence that the secular rise of income and consumption inequalities in the United States is age-dependent. It is more significant among younger households. With this feature, biasedness arises from the traditional methodology of decomposing inequality into age effect, year effect and cohort effect. A simple but effective remedy for the problem is proposed. The third chapter of the dissertation studies the age-profile of within-cohort income/consumption inequality, using the methodology proposed in the second chapter. It documents the age-profile of housing consumption inequality which is almost flat. This stands in contrast to the well-documented fact that within-cohort nonhousing consumption inequality rises with age, which has been argued to be evidence for persistent, uninsurable income shocks to households. This argument is challenged by the finding that housing consumption inequality has a flat age-profile. Within the framework of standard lifecycle model, the coexistence of rising nonhousing consumption inequality and flat housing consumption inequality constitutes a puzzle. A potential resolution lies in the negative effect of income uncertainty on housing decision which diminishes with age, as shown in the first chapter of the dissertation.

Download or read book Essays on the Macroeconomics of Housing Markets written by Boaz Abramson and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation studies the macroeconomic implications of government policies and house- hold decisions for housing market outcomes. The first chapter, "The Welfare Effects of Eviction and Homelessness Policies", studies the effects of various rental market policies that address evictions and homelessness. I find that "Right-to-Counsel" drives up rents so much that homelessness increases, and welfare is dampened. While lawyers make it harder to evict delinquent tenants, they are unable to prevent evictions because defaults on rent are driven by persistent shocks to income that cannot easily be smoothed across time. In contrast, rental assistance lowers tenants default risk and as a result reduces both homelessness and evictions and increases welfare. the second chapter, "Self-Assessed Financial Literacy in Housing Markets", studies the role of financial knowledge in home- ownership decisions. I show that households who self-assess them- selves to be more financially literate are more likely to own a house and take a more levered position on their house. I find that this is because households with higher levels of self-assessed financial knowledge have access to more accommodating mortgage terms and better risk-return tradeoffs in the housing market.

Download or read book Essays in Macroeconomics written by Hamza Polattimur and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on the Macroeconomics of Housing Markets written by Fabian Greimel and published by . This book was released on 2020* with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays on Housing Collateral and Macroeconomics written by Taejun Lim and published by . This book was released on 2015 with total page 113 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This thesis examines the role of housing as collateral and occupational choices in aggregate economies. Chapter 1 studies the impact of house price fuctuations on small businesses. The unprecedented upheavals in the U.S. housing market since 2000 and corresponding oscillations in home equity values profoundly affected the net worth and borrowing capacities of individual households. I develop a quantitative model where changes in house prices influence households' borrowing capacities, which in turn influence the entry-exit and expansion-contraction decisions of small business owners. I show that the housing collateral effect can explain the empirically observed strong correlation between house prices and small business activities (as measured by the number of businesses and the number of employees in the small business sector). Next, I conduct an experiment to measure how much of the shrinkage in small business activities during the recent recession can be explained by the housing collateral effect. I argue that the decrease in the value of housing as collateral, following the housing market crash in 2007, can account for 53 percent of the decrease in the number of small businesses and 98 percent of the decrease in the level of small business employment. In Chapter 2, I present an occupational choice model which emphasizes the use of housing as collateral and apply the model to examine the magnitude of the effect of a housing boom on economic growth in countries at different stages of financial development. The model results are twofold. First, a housing boom mitigates capital misallocation which results from an incomplete financial system, by expanding a business owner's borrowing capacity through an increase in collateral value, and thus boosts economy. Second, the impact of a housing boom is greater in countries with less developed financial systems. I provide empirical evidence to support the model results. To get around an endogeneity issue regarding housing booms (whether hous- ing booms boost economy through increases in collateral value or some other third factor boosts economy and thereby increases house prices), I focus on an essential difference between financial institutions (banks) and financial markets (stock mar- kets): only the former requires the provision of collateral in credit transactions. I use two sets of indicators - one for financial institutions and the other for financial markets - to proxy the level of financial development. The analysis of 23 housing boom episodes in 55 countries from 1997 to 2012 reveals that economic growth and financial development are inversely related when the level of financial development is measured by financial institutions, but unrelated when the level of financial development is measured by financial markets. The collateral impact of a housing boom also turns out to be greater in countries whose economies rely more on small firms. Both these empirical findings are in favor of the model results."--Pages v-vi.

Download or read book Three Essays on the Housing Market and the Macroeconomy written by Stefanie J. Huber and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis sheds light on certain macroeconomic aspects of the housing market. Chapter 1 explores a novel channel for house price bubble formation: the demand for housing consumption. I argue that the lower the demand for housing consumption, the larger the maximum bubble size, and the larger economies' vulnerability to house price bubbles. In terms of policy implications, I show that a help-to-buy scheme makes the economy more bubble-prone, while rental subsidies are an effective tool to reduce the prevalence of house price bubbles. Using a laboratory experiment, Chapter 2 supports the theoretical and empirical findings of Chapter 1. Chapter 3 investigates whether the persistent cross-country differences in homeownership rates are driven by cultural tastes. Analyzing the homeownership attitudes of second-generation immigrants in the United States leads to robust evidence for this hypothesis.

Download or read book Housing Markets in Europe written by Olivier de Bandt and published by Springer Science & Business Media. This book was released on 2010-10-14 with total page 416 pages. Available in PDF, EPUB and Kindle. Book excerpt: During the recession in the years 2008-2009, the most severe for mature economies in the post-war period, housing markets were often mentioned as having a special responsibility. The objective of this book is to shed light on the cyclical behaviour of the housing markets, its fundamental determinants in terms of supply and demand characteristics, and its relationship with the overall business cycle. The co-movements of house prices across countries are also considered, as well as the channel of transmission of house price changes to the rest of the economy. Particular attention is paid to the effects on private consumption, through possible wealth effects. The book is a compilation of original papers produced by economists and researchers from the four main national central banks in the euro area, also with the participation of leading academics.

Download or read book Essays in Housing and Macroeconomy written by and published by . This book was released on 2005 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Compared to the previous twenty years, residential investments in the US appear more stable after the mid-1980s. Chapter 2 explores key hypotheses regarding the underlying causes. In particular, it uses estimated DSGE models to examine whether a more responsive interest rate policy stabilizes the housing market by keeping inflation in check. These estimations indeed found a policy that has become more responsive over time. Counter-factual analysis confirms that the change stabilizes inflation as well as nominal interest rate. It does not, however, find the change in policy to have stabilizing effect on real economic activity including housing investment. It finds that smaller TFP shocks make modest contributions, while the biggest contributing factor to the fall in the housing volatility is a reduction in the sensitivity of the investment to demand variations. Chapter 3 constructs a richly specified model for the housing market to examine the empirical relevance of various costs and frictions, including the investment adjustment cost, sticky construction costs, search frictions, and sluggish adjustment of house prices. Using the US national-level quarterly data from 1985 and 2007, we find that the gradual adjustment of house prices is the most important and irreplaceable feature of the model. The key to developing an optimization-based empirical housing model, therefore, is to provide a structural interpretation for the slow adjustment in house prices. Chapter 4 uses US national-level time series of residential investment, price index of new houses, consumption and interest rate to explore whether the US, as a nation, experienced a drop in the price elasticity of supply of new housing. Maximum likelihood estimations with a simple stock-and-flow model found a statistically significant drop of the elasticity from 10 to 2.2, when the quarterly data between 1971 and 2007 are split at 1985. A richer model with mechanisms of gradual adjustment also indicates such a reduct.

Download or read book Essays in Macroeconomics and Finance written by Johannes Christopher Stroebel and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In this dissertation I examine a number of financial and macroeconomic aspects of U.S. housing and mortgage markets. In the first chapter I analyze the importance of asymmetric information between mortgage lenders in explaining mortgage lending outcomes. I show that mortgage lenders that are owned by large property developers have superior information about the relative construction quality of ex-ante observationally similar homes within the same development, and that they exploit this information in the competition with other, less-informed mortgage lenders. As a result the collateral portfolio of those integrated lenders is of above-average quality. To compensate for the winner's curse in the presence of an integrated lender, less-informed lenders charge higher interest rates in developments with an integrated lender. In the second chapter I analyze government interventions in the housing market on prices, quantities and aggregate and distributional welfare using an overlapping-generations heterogeneous-agent general-equilibrium model calibrated to the U.S. economy. I consider (i) the introduction of temporary home purchase tax credits and (ii) a removal of the asymmetric tax treatment of owner-occupied and rental housing. Home buyer tax credits temporarily raise house prices and transaction volumes, but have negative welfare effects. Removing the asymmetric tax treatment of owner-occupied and rental housing generates welfare gains for a majority of agents in a comparison of stationary equilibria. Welfare impacts are more varied, though still positive, along the transition between steady states. In the third chapter I analyze the Federal Reserve's mortgage-backed securities (MBS) purchase program, the largest credit easing program established by the Fed during the financial crisis. I examine the quantitative impact of this program on mortgage interest rate spreads. This is more difficult than frequently perceived because of simultaneous changes in prepayment risk and default risk. The empirical results attribute a sizeable portion of the decline in mortgage rates to such risks and a relatively small and uncertain portion to the program.

Download or read book Essays in Macroeconomics written by Yavuz Arslan and published by . This book was released on 2007 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in Macroeconomics and Household Finance written by Eirik E. Brandsaas and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation studies how family resources interact with financial constraints in households' savings and investment decisions. The first chapter quantifies the contribution of parental transfers to the homeownership rate of the young. Parents and children interact without commitment in an incomplete markets life-cycle overlapping generations model with housing. Transfers increase homeownership by relaxing borrowing constraints and reducing risks associated with homeownership. Moreover, children with wealthy parents may overinvest in housing to extract larger future transfers from their parents. I find that transfers increase the homeownership rate among households aged 25-44 by 15 p.p. (31%). Finally, I show that policies that reduce sales costs are more effective than relaxing financial constraints or purchase costs at decreasing the role of parental wealth in children's housing outcomes. The second chapter studies whether homeownership can explain the low stock market participation rate in the United States. I first show that the low participation rate is driven by high exit rates among participants and that exit is frequently tied to house purchases. I then extend a workhorse life-cycle model of portfolio choice to include housing. After estimating the models, with and without housing, I find that housing improves model fit. In particular, housing reduces the unexplained participation rate between the model and the data by 71%. Moreover, housing improves model fit by increasing the exit rate among young and middle-aged households and decreasing homeowners' liquid wealth. The third chapter studies the effect of parental wealth on a household's risk-taking in asset and labor markets. Together with my co-authors, we show that households with wealthier parents take more risk in their portfolio and labor market choices. Since risk in one dimension can be offset by choices in other assets, we develop a combined risk measure robust to this concern. Our results have implications on the persistence of wealth across generations and wealth inequality. Our results provide one explanation for the finding that returns to wealth are increasing in wealth since wealth is correlated over generations.

Download or read book Essays on Housing Markets Housing Market Policies and Taxation written by Shahar Rotberg and published by . This book was released on 2019 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis collects three papers studying topics related to housing markets, taxation, and macroeconomics. In Chapter 1, I study how capital and housing should be taxed. I formulate a housing model where credit is limited and the ability to invest capital varies across households. I calibrate the model to U.S. data and use it to determine the effect of housing and capital income taxation on the housing market and societal welfare. My main finding is that housing should be taxed at a positive rate and capital income should be subsidized. On the one hand, the housing tax raises housing costs for both renters and home-owners. On the other hand, the capital income subsidy encourages the most productive households to increase their capital investments, and thus, wages paid to labor rise. Since wages rise more rapidly than housing costs, overall welfare rises. In Chapter 2, I examine the misallocation of residential land in Israel and its implications for income taxation and societal welfare. I develop a methodology to calibrate a housing model to a transition path of over 50 years of Israeli data on land sales and show that Israel's government substantially oversold land and could have reduced its income tax rate by 1.8 percentage points. Restricting land sales is optimal because initial retired households own little land, initial housing demand is low and grows faster than interest rates, and because of the need to preserve land for large future generations. In Chapter 3, I explore the effect of wage income expectations on housing prices. I build a housing model, calibrate it to U.S. data, and show that wage income expectations alone can explain about 20% of the 2008 boom-bust in U.S. housing prices. The result is an outcome of households' perception that their expected life-time wage income is going up (down) during a sequence of good (bad) income shocks, which leads to a rapid increase (decrease) in housing demand and thus housing prices. This phenomenon is absent with rational expectations.

Download or read book Three Essays in Macroeconomics written by Zhiming Fu and published by . This book was released on 2014 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation studies three main topics in macroeconomics: the impact of labor market frictions on labor supply and income inequality, the impact of goods market frictions on individuals' optimization decisions, and the housing market in the business cycle.

Download or read book Essays in Household Finance and Macroeconomics written by Franco Zeccchetto and published by . This book was released on 2017 with total page 248 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the first chapter, we analyze the removal of the credit-risk guarantees provided by the Government Sponsored Enterprises (GSEs) in a model with agents heterogeneous in income and house price risk. We find that wealth inequality increases, driven by higher mortgage spreads and housing rents. Housing holdings become more concentrated. Foreclosures fall. The removal benefits high-income households while hurting low and mid-income households (renters and highly leveraged mortgagors with conforming loans). GSE reform requires compensating transfers, sufficiently high elasticity of rental supply, or linking GSE reform with the elimination of the mortgage interest deduction.

Download or read book Three Essays in Macroeconomics written by Julio Garín and published by . This book was released on 2012 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt: