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Online-Appendix A: Long Term Housing & Macro Model
In Online-Appendix A.1, we invoke Walras’ law as consistency check of the analytical derivation of the long run equilibrium. Online-Appendix A.2 summarizes the dynamic system, whereas Online-Appendix A.3 summarizes long run equilibrium values. These two sets of information form the basis for the numerical implementation. Online-Appendix A.4 discusses steady state implications for the various wealth-to-income ratios in the model. It also shows long run implications for the labor share, allocation variables and investment rates. Online-Appendix A.5 shows that the evolution of the housing wealth-to-income ratio is rather insensitive to the amount of available land. Online-Appendix A.6 displays transitional dynamics of the non-residential wealth-to-income ratio for the calibrated model.
Online-Appendix B: Canonical Housing & Macro Model
In Online-Appendix B.1, we characterize analytically the long run equilibrium of the canonical model. In Online-Appendix B.2, we invoke Walras’ law as a consistency check of the analytical derivation of the long run equilibrium. In Online-Appendix B.3, we summarize the dynamical system of the canonical model.