| Author (Corporate) | European Commission: DG Economic and Financial Affairs |
|---|---|
| Series Title | European Economy: Economic Papers |
| Series Details | No. 397, January 2010 |
| Publication Date | January 2010 |
| ISBN | 978-92-79-14397-7 |
| ISSN | 1725-3187 |
| EC | KC-AI-09-397-EN-N |
| Content Type | Journal | Series | Blog, Report |
|
This paper presents a DSGE model with residential investment and credit-constrained households estimated with US data over the period 1980Q1-2008Q4. In order to better understand speculative movements of house prices, we model land as an exhaustible resource, implying that house prices have asset market characteristics. We conduct an event study for the US over the period 1999Q1-2008Q4 which has been characterised by a housing boom and bust and examine which shocks have contributed to the evolution of GDP and its components over this period. We devote special attention to the contribution of non-fundamental shocks to asset prices over this episode. |
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| Source Link | Link to Main Source http://ec.europa.eu/economy_finance/publications/economic_paper/2010/ecp397_en.htm |
| Countries / Regions | Europe |
