Housing in a Neoclassical Growth Model外文电子书籍.pdfVIP

Housing in a Neoclassical Growth Model Bin Li China Center for Economic Research Peking University Preliminary Draft, May 2007 Abstract A simple social-planning two-sector general equilibium model with residential hous- ing entering utility function is analysed with emphasis on local dynamics. Conditons for saddle path stability are listed and their plausibility is likely to pass testing based on calibration results. Key words: Two-sector models; Dynamic stability; Housing 1 Introduction There is increasing recognition on the importance of the interplay between housing markets and the macroeconomy. However, full analyses on housing from an aggregate perspective by mainstream macroeconomics are surprisingly scarce, while conventional housing eco- nomics tends to be limited to urban scope. This paper tries to join in the recently small yet growing macro-housing literature which borders on both macroeconomy and real estate research. Leung (2004) provides a selective survey in this 脰eld. Existing research e搂orts mainly focus on the relationship between housing and taxation (Turnovsky and Okuyama 1994, Berkovec and Fullerton 1992), between housing and business cycles (Davis and Heathcote 2005, Greenwood and Hercowitz 1991, Jin and Zeng 2004, Matsuyama 1990), and between policy and real estate (Jin and Zeng 2007). This paper cuts in from a di搂erent perspective: what铆s the qualitative e搂ect that economic fundamentals have on housing market, particularly, on housing price? Will housing price change indeterminately like a bubble? We present a socially planning two- sector general equilibium model with resid