Land Prices and Unemployment

Zheng Liu, Jianjun Miao and Tao Zha

No 19382, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We integrate the housing market and the labor market in a dynamic general equilibrium model with credit and search frictions. The model is confronted with the U.S. macroeconomic time series. Our estimated model can account for two prominent facts observed in the data. First, the land price and the unemployment rate tend to move in opposite directions over the business cycle. Second, a shock that moves the land price is capable of generating large volatility in unemployment. Our estimation indicates that a 10 percent drop in the land price leads to a 0.34 percentage point increase of the unemployment rate (relative to its steady state).

JEL-codes: E21 E27 E32 E44 (search for similar items in EconPapers)
Date: 2013-08
Note: AP EFG ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Published as Liu, Zheng & Miao, Jianjun & Zha, Tao, 2016. "Land prices and unemployment," Journal of Monetary Economics, Elsevier, vol. 80(C), pages 86-105.

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Related works:
Journal Article: Land prices and unemployment (2016)
Working Paper: Land Prices and Unemployment (2015)
Working Paper: Land prices and unemployment (2013)
Working Paper: Land Prices and Unemployment (2013)
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