DP11519 Housing and macroeconomics

Author(s): Monika Piazzesi, Martin Schneider
Publication Date: September 2016
JEL(s): E2, E3, E4, G1, R2, R3
Programme Areas: Financial Economics, Monetary Economics and Fluctuations
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=11519

This paper surveys the literature on housing in macroeconomics. We fi?rst 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.