Cover IMF Working Papers
Buy Book in Print
Das House-Kapital: A Long Term Housing & Macro Model
Author:
Volker Grossman null

Search for other papers by Volker Grossman in
Current site
Google Scholar Close
and
Thomas Steger null

Search for other papers by Thomas Steger in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2017: Issue 080
Language:
English
Publication Date:
30 Mar 2017
DOI:
https://doi.org/10.5089/9781475590302.001
ISBN:
9781475590302
ISSN:
1018-5941
Pages:
82
Keywords:
WP; real estate; Housing Wealth; Non-Residential Wealth; Wealth-to-Income Ratios; macro model; land price; housing stock; macro Model; services producer; Housing; Housing prices; Land prices; Stocks; Numéraire
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (1.6 MB) Download Epub
There are, by now, several long term, time series data sets on important housing & macro variables, such as land prices, house prices, and the housing wealth-to-income ratio. However, an appropriate theory that can be employed to think about such data and associated research questions has been lacking. We present a new housing & macro model that is designed specifically to analyze the long term. As an illustrative application, we demonstrate that the calibrated model replicates, with remarkable accuracy, the historical evolution of housing wealth (relative to income) after World War II and suggests a further considerable increase in the future. The model also accounts for the close connection of house prices to land prices in the data. We also compare our framework to the canonical housing & macro model, typically employed to analyze business cycles, and highlight the main differences.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund