Winners and Losers in Housing Markets

Nobuhiro Kiyotaki, Alexander Michaelides and Kalin Nikolov

Journal of Money, Credit and Banking, 2011, vol. 43, issue 2‐3, 255-296

Abstract: This paper is a quantitatively oriented theoretical study into the interaction between housing prices, aggregate production, and household behavior over a lifetime. We develop a life‐cycle model of a production economy in which land and capital are used to build residential and commercial real estates. We find that in an economy where the share of land in the value of real estates is large, housing prices react more to an exogenous change in expected productivity or the world interest rate, causing a large redistribution between net buyers and net sellers of houses. Changing financing constraints, however, has limited effects on housing prices.

Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (59)

Downloads: (external link)
https://doi.org/10.1111/j.1538-4616.2011.00374.x

Related works:
Journal Article: Winners and Losers in Housing Markets (2011)
Working Paper: Winners and Losers in Housing Markets (2010)
Working Paper: Winners and Losers in Housing Markets (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:jmoncb:v:43:y:2011:i:2-3:p:255-296

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley Content Delivery ().