NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Housing, Finance and the Macroeconomy

Morris A. Davis, Stijn Van Nieuwerburgh

NBER Working Paper No. 20287
Issued in July 2014
NBER Program(s):AP, EFG, PE

In this chapter, we review and discuss the large body of research that has developed over the past 10-plus years that explores the interconnection of macroeconomics, finance, and housing. We focus on three major topics -- housing and the business cycle, housing and portfolio choice, and housing and asset returns -- and then review the recent literature that studies housing and the macroeconomy during the great housing boom and bust of 2000-2010. Our emphasis is on calibrated models that can be compared to data. In each section, we discuss the important questions, the typical set of tools used, and the insights that result from important papers. Although great progress has been made in understanding the important role that housing plays in understanding macroeconomic phenomena, work remains. For example, economists cannot fully explain all of the volatility in house prices during the unprecedented boom and bust period of 2000-2010. At the end of the chapter, we discuss a new literature that assesses the macroeconomic effects and welfare implications of housing policies.

download in pdf format
   (521 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w20287

Users who downloaded this paper also downloaded* these:
Dang, Gorton, Holmstrom, and Ordoñez w20255 Banks as Secret Keepers
Murfin and Petersen w20310 Loans on sale: Credit market seasonality, borrower need, and lender rents
Blinder and Watson w20324 Presidents and the U.S. Economy: An Econometric Exploration
Hanson, Shleifer, Stein, and Vishny w20288 Banks as Patient Fixed-Income Investors
Galí and Gambetti w19981 The Effects of Monetary Policy on Stock Market Bubbles: Some Evidence
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us