Housing Market Spillovers: Evidence from an Estimated DSGE Model

Matteo Iacoviello; STEFANO NERI

doi:10.1257/mac.2.2.125

journal article Apr 01, 2010

Housing Market Spillovers: Evidence from an Estimated DSGE Model

Matteo Iacoviello STEFANO NERI

American Economic Journal: Macroeconomics Vol. 2 No. 2 pp. 125-164 · American Economic Association

View at Publisher Save 10.1257/mac.2.2.125

Abstract

We study sources and consequences of fluctuations in the US housing market. Slow technological progress in the housing sector explains the upward trend in real housing prices of the last 40 years. Over the business cycle, housing demand and housing technology shocks explain one-quarter each of the volatility of housing investment and housing prices. Monetary factors explain less than 20 percent, but have played a bigger role in the housing cycle at the turn of the century. We show that the housing market spillovers are nonnegligible, concentrated on consumption rather than business investment, and have become more important over time. (JEL E23, E32, E44, O33, R31)

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Metrics

680

Citations

30

References

Details

Published: Apr 01, 2010
Vol/Issue: 2(2)
Pages: 125-164

Authors

M

Matteo Iacoviello

Boston College, Department of Economics, 140 Commonwealth Ave, Chestnut Hill, MA, 02467.

S

STEFANO NERI

Banca d'Italia, Research Department, Via Nazionale 91, 00184 Roma, Italy.

Cite This Article

Matteo Iacoviello, STEFANO NERI (2010). Housing Market Spillovers: Evidence from an Estimated DSGE Model. American Economic Journal: Macroeconomics, 2(2), 125-164. https://doi.org/10.1257/mac.2.2.125

Housing Market Spillovers: Evidence from an Estimated DSGE Model

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