Housing and Macroeconomics

Leung, Charles Ka Yui (2022): Housing and Macroeconomics.

Abstract

Until recently, the literature ignored the interactions between housing and macroeconomics. Thanks to many researchers' contributions, the macro-housing field is in development. This review complements previous research and highlights a few areas that have made significant progress lately. They are the rental market and related issues, housing affordability, people's beliefs and expectations, and the interactions between the aggregate and regional markets. Theoretical models have become increasingly realistic and hence can be solved only numerically. While the recent literature has provided essential policy lessons, it has yet delivered a "paradigm" for future research. There are also open questions that remain to be answered.

• Item Type: MPRA Paper
• Language: English
• Keywords: aggregate and regional shocks, belief and expectation, rental market, housing
• Subjects: E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E10 - General; G - Financial Economics > G0 - General > G00 - General; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R20 - General

References

Aastveit, K.A., Francesco Furlanetto, F. & Francesca Loria, F. (2021). Has the Fed Responded to House and Stock Prices? A Time-Varying Analysis, forthcoming in Review of Economics and Statistics.

Abramson, B. (2021). The Welfare Effects of Eviction and Homelessness Policies, mimeo.

Acemoglu, D., Carvalho, V. M., Ozdaglar, A. & Tahbaz-Salehi, A. (2012). The Network Origins of Aggregate Fluctuations. Econometrica 80(5), 1977–2016.

Acemoglu, D., Ozdaglar, A. & Tahbaz-Salehi, A. (2017). Microeconomic Origins of Macroeconomic Tail Risks. American Economic Review 107(1), 54–108.

Adam, K. & Woodford, M. (2021). Robustly optimal monetary policy in a new Keynesian model with housing, Journal of Economic Theory, 198(C), Article 105352.

Agarwal, S. & Varshneya, S. (2022) Financial crisis and the U.S. mortgage markets – a review, chpt 9, in C. K. Y. Leung ed., Handbook of Real Estate and Macroeconomics, Northampton, M.A., USA.

Ahn, S., Kaplan, G., Moll, B., Winberry, T. and Wolf, C. (2018). When inequality matters for macro and macro matters for inequality. NBER Macroeconomics Annual, 32(1): 1–75.

Aksoy, C.G., Barrero, J.M., Bloom, N., Davis, S.J., Dolls, M., Zarate, P., (2022). Working from home around the world. Forthcoming in Brookings Papers on Economic Activity.

Albouy, D., Ehrlich, G. & Liu, Y. (2016). Housing Demand, Cost-of-Living Inequality, and the Affordability Crisis, NBER Working Paper No. 22816. https://www.nber.org/papers/w22816

An, X., Gabriel, S. A. & Tzur-Ilan, N. (2022). More than Shelter: The Effect of Rental Eviction Moratoria on Household Well-Being, American Economic Review Papers and Proceedings, 112, 308–312.

Atalay, E. (2017). How Important Are Sectoral Shocks?, American Economic Journal: Macroeconomics, 9(4), 254-280.

Azariadis, C. (2018). Riddles and Models. Journal of Economic Literature, 56(4), 1538-1576.

Baqaee, D. R. & Farhi, E. (2020). Productivity and Misallocation in General Equilibrium, Quarterly Journal of Economics, 135(1), 105-163.

Bardhan, A., Edelstein, R. and Kroll, C. (Ed.) (2012). Global Housing Markets: Crises, Policies, and Institutions. New York: John Wiley.

Baxter, M. (1996). Are Consumer Durables Important for Business Cycles. Review of Economics and Statistics 78(1): 147-155.

Behrens, K., Duranton, G. & Robert-Nicoud, F. (2014). Productive Cities: Sorting, Selection, and Agglomeration, Journal of Political Economy, 122(3), 507-553.

Ben-Shahar, D., Gabriel, S. & Golan, R. (2020a) Can't get there from here: Affordability distance to a superstar city, Regional Science and Urban Economics, Article 103357.

Ben-Shahar, D., Gabriel, S. & Oliner, S. (2020b) New research on housing affordability, Regional Science and Urban Economics, Article 103438.

Ben-Shafar, D., Leung, C. and Ong, S. E. (Ed.) (2008). Mortgage Market Worldwide. Oxford: Blackwell.

Beraja, M., Fuster, A., Hurst, E. & Vavra, J. (2019a). Regional Heterogeneity and the Refinancing Channel of Monetary Policy, Quarterly Journal of Economics, 134(1), 109-183.

Beraja, M., Hurst, E. & Ospina, J. (2019b). The Aggregate Implications of Regional Business Cycles, Econometrica, 87(6), 1789-1833.

Berliant, M. & Wang, P. (2019). General Equilibrium Theories of Spatial Agglomeration, In the Oxford Research Encyclopedia of Economics and Finance, Oxford University Press. https://oxfordre.com/economics/view/10.1093/acrefore/9780190625979.001.0001/acrefore-9780190625979-e-550

Bhattacharya, P. S. (2022). Land and Macroeconomics, chpt 3, in C. K. Y. Leung ed., Handbook of Real Estate and Macroeconomics, Northampton, M.A., USA.

Brandts, J., Busom, I., Lopez-Mayan, C. & Panadés, J. (2022). Dispelling misconceptions about economics, Journal of Economic Psychology, 88, article 102461.

Bryan, G., Glaeser, E. and Tsivanidis, E. (2019). Cities in the Developing World, NBER Working Papers 26390. http://www.nber.org/papers/w26390

Burnside, C., Eichenbaum, M., Rebelo, S. (2016). Understanding Booms and Busts in Housing Markets, Journal of Political Economy, 124, 1088–1147.

Caplan, B. (2002). Systematically Biased Beliefs About Economics: Robust Evidence of Judgemental Anomalies from the Survey of Americans and Economists on the Economy, Economic Journal, 112(479), 433-458.

Carvalho, V. M., & Gabaix, X. (2013). The Great Diversification and Its Undoing, American Economic Review, 103 (5): 1697–1727.

Carvalho, V. M. & Grassi, B. (2019). Large Firm Dynamics and the Business Cycle, American Economic Review, 109(4), 1375-1425.

Case, K. E., Quigley, J. M. & Shiller, R. J. (2005). Comparing Wealth Effects: The Stock Market versus the Housing Market, B.E. Journal of Macroeconomics, 5(1), 1-34.

Chambers, M.S., Garriga, C. & Schlagenhauf, D. (2009a). Accounting for changes In the homeownership rate, International Economic Review, 50(3), 677-726.

Chambers, M.S., Garriga, C. & Schlagenhauf, D. (2009b). The loan structure and housing tenure decisions in an equilibrium model of mortgage choice, Review of Economic Dynamics, 12, 444–468.

Chang, K. L. & Leung, C. K. Y. (2022). How did the asset markets change after the Global Financial Crisis? chpt 12, in C. K. Y. Leung ed., Handbook of Real Estate and Macroeconomics, Northampton, M.A., USA.

Chang, Y. (2000). Comovement, Excess Volatility, and Home Production. Journal of Monetary Economics 46(2): 385-396.

Chen, J. & Nong, H. (2016). The heterogeneity of market supply effects of public housing provision: Empirical evidence from China, Journal of Housing Economics, 33, 115–127.

Chen, N. K., Cheng, H. L. and Chu, H. L. (2015). Asset Price and Monetary Policy: The Effect of Expectations Formation. Oxford Economic Papers 67(2): 380-405.

Chen, N. K., and Leung, C. (2008). Asset Price Spillover, Collateral and Crises: with An Application to Property Market Policy. Journal of Real Estate Finance and Economics 37(4): 351-385.

Chen, N. K. and Wang, H. J. (2007). The Procyclical Leverage Effect of Collateral Value on Bank Loans-Evidence from The Transaction Data of Taiwan. Economic Inquiry 45(2): 395-406.

Cherrier, B. (2017). Classifying Economics: A History of the "JEL." Journal of Economic Literature, 55(2), 545-579.

Chetty, R., Friedman, J. N., Hendren, N., Stepner, M. & the Opportunity Insights Team (2022). The Economic Impacts of COVID-19: Evidence from a New Public Database Built Using Private Sector Data, working paper.

Chodorow-Reich, G. (2020). Regional data in macroeconomics: Some advice for practitioners, Journal of Economic Dynamics and Control, 115, Article 103875.

Christelis, D., Georgarakos, D., Jappelli, T., Pistaferri, L. & Rooij, M. v., (2021). Heterogeneous wealth effects, European Economic Review, forthcoming.

Clifford, B., Wilson, A. & Harris, P. (2019). Homelessness, health and the policy process: A literature review, Health Policy, 123, 1125-1132.

Cobb-Clark, D. A. & Zhu, A. (2017). Childhood homelessness and adult employment: the role of education, incarceration, and welfare receipt, Journal of Population Economics, 30, 893-924.

Cohen, E. (2022). The Effect of Housing First Programs on Future Homelessness and Socioeconomic Outcomes, Federal Reserve Bank of Kansas City Working Paper.

Collinson, R., Humphries, J. E., Mader, N. S., Reed, D. K., Tannenbaum, D. I., & Dijk, W. v. (2022). Eviction and Poverty in American Cities, NBER Working Paper No. 30382, http://www.nber.org/papers/w30382.

Colonnello, S., Marfe, R. & Xiong, Q. (2021). Housing Yields, mimeo.

Cooley, T. and Prescott, E. (1995). Economic Growth and Business Cycles. In T. Cooley (ed.), Frontiers of Business Cycle Research, Princeton: Princeton University Press.

Corbae, D., Glover, A. & Nattinger, M. (2022). Equilibrium Eviction, mimeo.

Couture, V., Gaubert, C., Handbury, J. & Hurst, E. (2021). Income Growth and the Distributional Effects of Urban Spatial Sorting, https://erikhurst.com/wp-content/uploads/2021/11/gentrification_nov2021.pdf

Dalmazzo, A., de Blasio, G., Poy, S. (2022). Can Public Housing Trigger Industrialization? Journal of Housing Economics, 57, article 101853.

Davis, M. and Heathcote, J. (2005). Housing and The Business Cycle. International Economic Review 46(3): 751-784.

Davis, M. and Van Nieuwerburgh, S. (2014). Housing, Finance and The Macroeconomy, NBER Working paper No. 20287. http://www.nber.org/papers/w20287

de Bartolome, C. A. M. & Ross, S. L. (2003). Equilibria with local governments and commuting: income sorting vs income mixing, Journal of Urban Economics, 54(1), 1-20.

Deng, Y., Qin, Y. & Wu, J. (2019) Superstar cities and the globalization pressures on affordability, Journal of Housing Economics, Article 101638.

Deng, Y., Quigley, J. M. and Van Order, R. (2000). Mortgage Terminations, Heterogeneity and the Exercise of Mortgage Options, Econometrica, 68(2), 275-308.

Deng, Y., Tang, Y., Ping Wang, P. & Wu, J. (2020). Spatial Misallocation in Chinese Housing and Land Markets, NBER Working Papers 27230, http://www.nber.org/papers/w27230

Diamond, R., McQuade, T. & Qian, F. (2019). The Effects of Rent Control Expansion on Tenants, Landlords, and Inequality: Evidence from San Francisco, American Economic Review, 109, 3365-94.

Dietz, R. D. and Haurin, D. R. (2003). The social and private micro-level consequences of homeownership, Journal of Urban Economics, 54, 401-450.

Duca, J. V., Muellbauer, J. & Murphy, A. (2021). What Drives House Price Cycles? International Experience and Policy Issues, Journal of Economic Literature, 59(3), 773-864.

Duranton, G. & Puga, D. (2014). The Growth of Cities, in P. Aghion & S. Durlauf (ed.), Handbook of Economic Growth, vol. 2, chapter 5, 781-853, Elsevier.

Edelstein, R. and Kim, K. H. (2004). Special Issue on Housing and The Macroeconomy: The Nexus. Journal of Housing Economics 13 (4): 247-248.

Eeckhout, J., Pinheiro, R. & Schmidheiny, K. (2014). Spatial Sorting, Journal of Political Economy, 122(3), 554 – 620.

Eichholtz, P., Kok, N. and Quigley, J. M. (2010). Doing Well by Doing Good? Green Office Buildings, American Economic Review, 100(5), 2492-2509.

Eichenbaum, M., Rebelo, S. & Wong, A. (2022). State-Dependent Effects of Monetary Policy: The Refinancing Channel, American Economic Review, 112(3), 721-761.

Epple, D., Brett Gordon, B. & Sieg, H. (2010). A New Approach to Estimating the Production Function for Housing, American Economic Review, 100(3), 905-924.

Fan, Y., Leung, C. K. Y. & Yang, Z. (2022) Financial Conditions, Local Competition, and Local Market Leaders: The Case of Real Estate Developers, Pacific Economic Review, 27, 131-193.

Favilukis, J., Mabille, P. & Van Nieuwerburgh, S. (2022) Affordable Housing and City Welfare, Review of Economic Studies, forthcoming.

Fratantoni, M. & Schuh, S., (2003). Monetary policy, housing, and heterogeneous regional markets. Journal of Money, Credit and Banking, 35 (4), 557–589.

Fu, S. and Viard, V. B. (2022). A Mayor’s Perspective on Tackling Air Pollution, chpt 16, in C. K. Y. Leung ed., Handbook of Real Estate and Macroeconomics, Northampton, M.A., USA.

Gabaix, X. (2011). The Granular Origins of Aggregate Fluctuations. Econometrica 79(3), 733–72.

Gabriel, S. & Painter, G. (2020) Why affordability matters, Regional Science and Urban Economics, Article 103378.

Gai, Q., Guo, N., Li, B., Shi, Q. & Zhu, X. (2021). Migration Costs, Sorting, and the Agricultural Productivity Gap, working paper.

Garriga, C. & Hedlund, A. (2020). Mortgage Debt, Consumption, and Illiquid Housing Markets in the Great Recession, American Economic Review, 110(6), 1603-1634.

Garriga, C., Hedlund, A., Tang, Y. & Wang, P. (2021). Rural-urban migration and house prices in China, Regional Science and Urban Economics, 91, Article 103613.

Garriga, C., Manuelli, R. & Adrian Peralta-Alva, A. (2019). Macroeconomic Model of Price Swings in the Housing Market, American Economic Review, 109(6), 2036-2072.

Gelain, P., Lansing, K. L. & Natvik, G. J. (2018). Explaining the Boom–Bust Cycle in the U.S. Housing Market: A Reverse‐Engineering Approach, Journal of Money, Credit and Banking, 50(8), 1751-1783.

Genesove, D. and Han, L. (2012). Search and matching in the housing market, Journal of Urban Economics, 72(1), 31-45.

Giovannini, E. (2008). Understanding Economic Statistics: An OECD perspective, https://www.oecd.org/sdd/41746710.pdf

Girardin, E. & Joyeux, R. (2022). Testing for real estate bubbles, chpt 6, in C. K. Y. Leung ed., Handbook of Real Estate and Macroeconomics, Northampton, M.A., USA.

Glaeser, E L (2011). Triumph of The City, New York: Penguin Press.

Glaeser, E L (2013). A Nation of Gamblers: Real Estate Speculation and American History, American Economic Review, 103(3), 1-42.

Glaeser, E. L. & Gottlieb, J. D. (2009). The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States, Journal of Economic Literature, 47(4), 983-1028.

Glaeser, E. L., Hanushek, E. A. & Quigley, J. M. (2004). Opportunities, race, and urban location: the influence of John Kain, Journal of Urban Economics, 56(1), 70-79.

Glaeser, E. L. & Kahn, M. E. (2010). The greenness of cities: Carbon dioxide emissions and urban development, Journal of Urban Economics, 67(3), 404-418.

Glaeser, E. L., Kerr, W. R. and Ponzetto, G. A.M. (2010). Clusters of entrepreneurship, Journal of Urban Economics, 67(1), 150-168.

Glaeser, E. L., Kim, H. and Luca, M. (2019). Nowcasting the Local Economy: Using Yelp Data to Measure Economic Activity," NBER Chapters, in K. Abraham, R. Jarmin, B. Moyer, M. Shapiro ed., Big Data for Twenty-First-Century Economic Statistics, National Bureau of Economic Research, Inc.

Glaeser, E. L., & Luttmer, E. (2003). The Misallocation of Housing Under Rent Control. American Economic Review, 93(4), 1027-1046.

Glandon, P. J., Kuttner, K., Mazumder, S., Caleb Stroup, C. (2022). Macroeconomic Research, Present and Past, NBER Working Paper No. 29628. http://www.nber.org/papers/w29628

Goldstein, G.S. and Moses, L. N. (1973) A Survey of Urban Economics, Journal of Economic Literature, 11(2), 471- 515.

Gong, Y. & Leung, C. K. Y. (2020). When education policy and housing policy interact: Can they correct for the externalities?, Journal of Housing Economics, vol. 50(C).

Gong, Y. & Leung, C. K. Y. (2021). Does Space Matter? The Case of a Cap on the Housing Expenditure Share, paper presented in AREUEA conference.

Goodman, A. C., M. Kawai, M. (1982). Permanent income, hedonic prices and demand for housing: New evidence, Journal of Urban Economics, 12, 214-237.

Goodman, L. S. & Mayer, C. (2018). Homeownership and the American Dream, Journal of Economic Perspectives, 32, 31-58.

Goodspeed, T. (2022). Trust the Experts? Relative Performance of Inflation Expectations, 1946-2022, available at https://live-hoover9.pantheonsite.io/sites/default/files/research/docs/22120-Goodspeed.pdf

Grech, E. & Raeburn, T. (2019). Experiences of hospitalised homeless adults and their health care providers in OECD nations: A literature review. Collegian, 26, 204-211.

Green, R. (2022). Is housing still the business cycles? Perhaps not. in C. K. Y. Leung ed., Handbook of Real Estate and Macroeconomics, Northampton, M.A., USA.

Green, R., Malpezzi, S., & Mayo, S. (2005). Metropolitan-specific estimates of the price elasticity of supply of housing, and their sources. American Economic Review, 95(2), 334–339.

Greenwald, D. L. & Guren, A. (2021). Do Credit Conditions Move House Prices? Mimeo.

Greenwood, J., Guner, N. & Kopecky, K. (2022) Substance Abuse during the Pandemic: Implications for Labor-Force Participation, NBER Working paper No. 29932. http://www.nber.org/papers/w29932

Greenwood, J. and Hercowitz, Z. (1991). The Allocation of Capital and Time over the Business Cycle. Journal of Political Economy 99(6): 1188-1214.

Gyourko, J., C. Mayer, and T. Sinai (2013): “Superstar Cities,” American Economic Journal: Economic Policy, 5(4), 167–99.

Halket, J. and Pignatti Morano di Custoza, M. (2015). Homeownership and The Scarcity of Rentals, Journal of Monetary Economics 76: 107-123.

Halket, J. and Vasudev, S. (2014). Saving Up or Settling Down: Home Ownership over The Life Cycle. Review of Economic Dynamics 17(2): 345-366.

Han, L., Ngai, L. R. & Sheedy, K. D. (2022). To Own or to Rent? The Effects of Transaction Taxes on Housing Markets, mimeo.

Hanushek, E., Sarpça, S. & Yilmaz, K. (2011). Private Schools and Residential Choices: Accessibility, Mobility, and Welfare, B.E. Journal of Economic Analysis & Policy, 11(1), 1-34.

Hanushek, E. & Yilmaz, K. (2007). The complementarity of Tiebout and Alonso, Journal of Housing Economics, 16(2), 243-261.

Hanushek, E. & Yilmaz, K. (2011). Urban Education, Location, and Opportunity in The United States. In N. Brooks, K. Donaghy, and G. Knaap (Ed.), Oxford Handbook of Urban Economics and Planning (pp. 583-615). Oxford: Oxford University Press.

Hanushek, E. & Yilmaz, K., (2022). Residential location and education in the United States. in C. K. Y. Leung ed., Handbook of Real Estate and Macroeconomics, Northampton, M.A., USA.

Hattori, T. and Yoshida, J. (2022). The Bank of Japan as a Real Estate Tycoon: Large-Scale REIT Purchases, chpt 2., in C. K. Y. Leung ed., Handbook of Real Estate and Macroeconomics, Northampton, M.A., USA.

Haurin, D. R., Dietz, R. D. and Weinberg, B. A. (2002). The impact of neighborhood homeownership rates: A review of the theoretical and empirical literature, Journal of Housing Research, 13, 119-151.

Hendershott, P., Hendershott, R., & Shilling, J. (2010). The mortgage finance bubble: Causes and corrections. Journal of Housing Research, 19(1), 1–16.

Herkenhoff, K., Ohanian, L. E. & Prescott, E. C. (2018). Tarnishing the Golden and Empire States: Land-Use Regulations and the U.S. Economic Slowdown, Journal of Monetary Economics, 93, 89-109.

Huang, D., Leung, C. K. Y. & Qu, B. (2015). Do Bank Loans and Local Amenities Explain Chinese Urban House Prices? China Economic Review 34, 19-38.

Huang, D., Leung, C. K. Y. & Tse, C. Y. (2018). What account for the differences in rent-price ratio and turnover rate? A search-and-matching approach, Journal of Real Estate Finance and Economics, 57(3), 431-475.

Hubbard, G. & O’Brien, A. P. (2022). Economics, 8th edition, New York: Peearson.

Iacoviello, M. (2005). House Prices, Borrowing Constraints, and Monetary Policy in The Business Cycle. American Economic Review 95(3), 739-764.

Jones, C., Midrigan, V. & Philippon, T. (2022). Household leverage and the recession, Econometrica, 90(5), 2471-2505.

Jones, T. & Sirmans, G. S. (2015). The Underlying Determinants of Residential Mortgage Default, Journal of Real Estate Literature, 23, 167-205.

Jones, T. & Sirmans, G. S. (2019). Understanding Subprime Mortgage Default, Journal of Real Estate Literature, 27:1, 27-52.

Joya, O. & Rougier, E. (2019). Do (all) sectoral shocks lead to aggregate volatility? Empirics from a production network perspective, European Economic Review, 113(C), 77-107.

Justiniano, A., Primiceri, G., & Tambalotti, A. (2016). A simple model of subprime borrowers and credit growth. American Economic Review, 106(5), 543–547.

Kahn, M., Wu, J., Sun, W. and Zheng, S. (2022). Industrial parks and urban growth: A political economy story in China, chpt 14, in C. K. Y. Leung ed., Handbook of Real Estate and Macroeconomics, Northampton, M.A., USA.

Kalikman, P. L. & Scally, J. (2022). Mortgage Default: A Heterogeneous-Agent Model, mimeo.

Kan, K. (2000). Dynamic Modeling of Housing Tenure Choice, Journal of Urban Economics, 48(1), 46-69.

Kan, K., Kwong, S. K. S., Leung, C. K. Y. (2004). The dynamics and volatility of commercial and residential property prices: theory and evidence, Journal of Regional Science, 44(1), 95-123.

Kaplan, G., Mitman, K. & Violante, G. L. (2020). The Housing Boom and Bust: Model Meets Evidence, Journal of Political Economy, 128(9), 3285-3345.

Kaplan, G. & Violante, G. L. (2014). A Model of the Consumption Response to Fiscal Stimulus Payments, Econometrica, 82(4), 1199-1239.

Kaplan, G. & Violante, G. L. (2018). Microeconomic Heterogeneity and Macroeconomic Shocks, Journal of Economic Perspectives, 32(3), 167-194.

Kaplan, G., Violante, G. L. & Weidner, J. (2014). The Wealthy Hand-to-Mouth, Brookings Papers on Economic Activity, 45(1), Spring, 77-153.

Kehoe, P. J., Midrigan, V. & Pastorino, E. (2016). Debt Constraints and the Labor Wedge, American Economic Review, 106(5), 548-553.

Kehoe, P. J., Midrigan, V. & Pastorino, E. (2018). Evolution of Modern Business Cycle Models: Accounting for the Great Recession, Journal of Economic Perspectives, 32(3), 141-166.

King, R. G. and Rebelo, S. (1999), Resuscitating Real Business Cycles, in J. B. Taylor and M. Woodford (eds.), Handbook of Macroeconomics, Amsterdam: Elsevier, 928–1002.

Kiyotaki, N. and Moore, J. (1997). Credit Cycles. Journal of Political Economy 105(2): 211-248.

Kladivko, K. & Österholm, P. (2020). Can Households Predict where the Macroeconomy is Headed? Available at: https://www.econstor.eu/bitstream/10419/244569/1/wp2020-11.pdf

Krainer, J. (2001). A theory of liquidity in residential real estate markets. Journal of Urban Economics, 49, 32-53.

Krueger, D., Mitman, K. and Perri, F. (2016). Macroeconomics and Household heterogeneity. Chap. 11 in Handbook of Macroeconomics, vol. 2A, edited by J. B. Taylor and H. Uhlig. Elsevier.

Kuchler, T., Piazzesi, M. & Stroebel, J. (2022). Housing Market Expectations, NBER Working Paper No. 29909, http://www.nber.org/papers/w29909

Kwan, Y. K., Leung, C. K. Y., & Dong, J. (2015). Comparing consumption-based asset pricing models: The case of an Asian city. Journal of Housing Economics, 28, 18–41.

Kydland, F. E. & Prescott, E. C. (1982). Time to Build and Aggregate Fluctuations, Econometrica, 50, 1345–1370.

LaCour-Little, M. (2008). Mortgage Termination Risk: A Review of the Recent Literature, Journal of Real Estate Literature, 16, 295-326.

Lai, R. N. & Van Order, R. A. (2022). Disaggregating house price dynamics, chpt 7, in C. K. Y. Leung ed., Handbook of Real Estate and Macroeconomics, Northampton, M.A., USA.

Landvoigt, T., Piazzesi, M. & Schneider, M. (2015). The Housing Market(s) of San Diego, American Economic Review, 105(4), 1371-1407.

Lazear, E. (1991). Labor Economics and the Psychology of Organizations, Journal of Economic Perspectives, 5(2), 89-110.

Leung, C. (1999). Income Tax, Property Tax, and Tariff in A Small Open Economy. Review of International Economics 7(3): 541-554.

Leung, C. (2001). Relating International Trade to The Housing Market. Review of Development Economics 5(2): 328-35.

Leung, C. (2003). Economic Growth and Increasing House Price. Pacific Economic Review 8(2): 183-190.

Leung, C. (2004). Macroeconomics and Housing: a review of the literature. Journal of Housing Economics, 13, 249-267.

Leung, C. K. Y. (2007). Equilibrium correlations of asset price and return, Journal of Real Estate Finance and Economics, 34, 233-256.

Leung, C. K. Y. (2014). Error correction dynamics of house price: An equilibrium benchmark, Journal of Housing Economics, 25, 75-95.

Leung, C. K. Y. ed. (2022). Handbook of Real Estate and Macroeconomics, Northampton, M.A., USA.

Leung, C., & Chen, N. K. (2006). Intrinsic cycles of land price: A simple model. Journal of Real Estate Research, 28(3), 293–320.

Leung, C., Leong, Y. C. F., & Wong, K. S. K. (2006). Housing price dispersion: An empirical investigation. Journal of Real Estate Finance and Economics, 32(3), 357–385.

Leung, C. K. Y. & Ng, C. Y. J. (2019). Macroeconomic Aspects of Housing. In the Oxford Research Encyclopedia of Economics and Finance, Oxford University Press. https://oxfordre.com/economics/view/10.1093/acrefore/9780190625979.001.0001/acrefore-9780190625979-e-294

Leung, C. K. Y., Ng, J. C. Y. & Tang, E. C. H. (2020a). What do we know about Housing Supply? The case of Hong Kong, Economic and Political Studies, 8(1), 6-20.

Leung, C. K. Y., Ng, J. C. Y. & Tang, E. C. H. (2020b). Why is the Hong Kong housing market unaffordable? Some Stylized facts and estimations, Quarterly Bulletin, Central Bank of the Republic of China (Taiwan), 42 (1), 5-58. https://www.cbc.gov.tw/tw/cp-705-111879-488e5-1.html

Leung, C. K. Y. & Quigley, J. (2007). Special Issue on Macroeconomics, Regulation, and Housing: Introduction. Journal of Housing Economics 16: 99-101.

Leung, C. K. Y., Sarpça, S. & Yilmaz, K. (2012). Public housing units vs. housing vouchers: Accessibility, local public goods, and welfare, Journal of Housing Economics, 21(4), 310-321.

Leung, C. K. Y. & Tang, E. C. H. (2023). The dynamics of the house price‐to‐income ratio: Theory and evidence, Contemporary Economic Policy, 41, 61-78.

Leung, C. K. Y. & Teo, W. L. (2011). Should the optimal portfolio be region-specific? A multi-region model with monetary policy and asset price co-movements, Regional Science and Urban Economics, 41(3), 293-304.

Leung, C. K. Y. & Tsang, K. P. (2023). A special issue on housing affordability: An introduction, Contemporary Economic Policy, 41, 7-8.

Leung, C. K. Y. & Tse, C. Y. (2017). Flipping in the housing market, Journal of Economic Dynamics and Control, 76, 232-263.

Li, S. M. & Yu, F. L. (1990). The redistributive effects of Hong Kong’s public housing programme 1976-86. Urban Studies, 27, 105–117.

Ling, D. C., Ooi, J. T. L. & Le, T. T. T. (2015). Explaining House Price Dynamics: Isolating the Role of Nonfundamentals. Journal of Money Credit and Banking, 47(S1), 87– 125.

Liu, C. & Williams, N. (2019). State-level implications of federal tax policies, Journal of Monetary Economics, 105(C), 74-90.

Lubik, T. and Surico, P. (2010). The Lucas critique and the stability of empirical models, Journal of Applied Econometrics, 25(1), 177-194.

Lucas, R.E., (1976). Econometric policy evaluation: A critique, in: K. Brunner and A.H. Meltzer, eds., The Phillips curve and labor markets, Carnegie-Rochester conferences on public policy 1 (North-Holland, Amsterdam).

Lucas, R. E. and Sargent, T. J. (1978). After Keynesian macroeconomics, in After the Phillips curve: Persistence of high inflation and high unemployment. Federal Reserve Bank of Boston, Boston, M.A.

Mabille, P. (2020). The Missing Home Buyers: Regional Heterogeneity and Credit Contractions, working paper.

Maćkowiak, B., Matějka, F. & Wiederholt, M. (2021). Rational Inattention: A Review, ECB working paper.

MacRae, C.D., Struyk, R.J. (1977). The Federal Housing Administration (FHA), tenure choice, and residential land use, Journal of Urban Economics, 4(3), 360-378.

Malpezzi, S. (1999). Economic analysis of housing markets in developing and transition economies, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, volume 3, chapter 44, pages 1791-1864, Elsevier.

Malpezzi, S. (2001). The Contributions of Stephen K. Mayo to Housing and Urban Economics, Journal of Housing Economics, 10(2), 72-108.

Malpezzi, S. (2017). Residential Real Estate in The U.S. Financial Crisis, The Great Recession, and Their Aftermath. Taiwan Economic Review 45(1): 5-56.

Malpezzi, S. (2018). The Wisconsin Program in Real Estate and Urban Land Economics: A Century of Tradition and Innovation. University of Wisconsin-Madison, Mimeo.

Malpezzi, S. (2020). Global Perspectives on Real Estate and Urban Development in a Time of Stress. University of Wisconsin-Madison, Mimeo.

Malpezzi, S. (2023) Housing affordability and responses during times of stress: A preliminary look during the COVID‐19 pandemic, Contemporary Economic Policy, 41, 9-40.

Malpezzi, S. & Vandell, K. (2002) Does the low-income housing tax credit increase the supply of housing?, Journal of Housing Economics, 11(4), 360-380.

McDonald, J. & D. McMillen, D. (2010). Urban Economics and Real Estate: Theory and Policy, 2nd Edition, New York: Wiley.

Mian, A. & Sufi, A. (2011). House Prices, Home Equity-Based Borrowing, and the U.S. Household Leverage Crisis, American Economic Review, 101(5), 2132-2156.

Mian, A. & Sufi, A. (2014). What Explains the 2007-2009 Drop in Employment? Quarterly Journal of Economics, 82(6), 2197-2223.

Mian, A., Rao, K. & Sufi, A. (2013). Household Balance Sheets, Consumption, and the Economic Slump, Quarterly Journal of Economics, 128(4), 1687-1726.

Murray, M. (1983). Subsidized and Unsubsidized Housing Starts: 1961-1977, Review of Economics and Statistics, 65(4), 590-597.

Ng, J. C. Y. (2022). International Macroeconomic Aspects of Housing, chpt 11, in C. K. Y. Leung ed., Handbook of Real Estate and Macroeconomics, Northampton, M.A., USA.

Ng, J. C. Y., Leung, C. K. Y. and Chen, S. (2022). Corporate Real Estate Holding and Stock Returns: Testing Alternative theories with international Listed firms, Journal of Real Estate Finance and Economics, forthcoming.

Ngai, L. R., Sheedy, K. (2020). The Decision to Move House and Aggregate Housing-Market Dynamics Journal of the European Economic Association, 18(5), 2487-2531.

OECD (2022). Housing tenures, https://www.oecd.org/els/family/HM1-3-Housing-tenures.pdf (retrieved 2022/07).

O'Flaherty, B., Scutellab, R., & Tseng, Y.P. (2018). Private information, exits from homelessness, and better ways to operate rehousing programs, Journal of Housing Economics, 41, 93-105.

Ogawa, K. (2022). Real Estate Market and Consumption: Macro and Micro Evidence of Japan, chpt 1, in C. K. Y. Leung ed., Handbook of Real Estate and Macroeconomics, Northampton, M.A., USA.

Ogawa, K., Kitasaka, S. I., Yamaoka, H., and Iwata, Y. (1996). Borrowing constraints and the role of land asset in Japanese corporate investment decision. Journal of the Japanese and International Economies, 10(2), 122-149.

Oikarinen, E., Bourassa, S.C., Hoesli, M. & Engblom, J. (2018). U.S. Metropolitan House Price Dynamics, Journal of Urban Economics, 64, 54-69.

Ortalo-Magné, F. & Prat, A. (2014). On the Political Economy of Urban Growth: Homeownership versus Affordability, American Economic Journal: Microeconomics, 6(1), 154-181.

Ortalo-Magné, F. and Rady, S. (2006). Housing Market Dynamics: On The Contribution of Income Shocks and Credit Constraints. Review of Economic Studies 73(2): 459-485.

Ortalo-Magné, F. and Rady, S. (2008). Heterogeneity within communities: A stochastic model with tenure choice, Journal of Urban Economics, 64(1), 1-17.

Parkhomenko, A. (2020). Local Causes and Aggregate Implications of Land Use Regulation, retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3739183 .

Parkhomenko, A. (2022). Homeownership, Polarization, and Inequality, retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3854352 .

Painter, G., Gabriel, S., Myers, D. (2001). Race, Immigrant Status, and Housing Tenure Choice, Journal of Urban Economics, 49(1), 150-167.

Phang, S. Y., & Helble, M. (2016). Housing policies in Singapore, retrieved from https://www.adb.org/sites/default/files/publication/181599/adbi-wp559.pdf

Piazzesi, M. and Schneider, M. (2016). Housing and Macroeconomics (Working paper No. 22354). http://www.nber.org/papers/w22354

Pinto, S. M. & Sarte, P. D. (2022). From the Regional Economy to the Macroeconomy, chpt 13, in C. K. Y. Leung ed., Handbook of Real Estate and Macroeconomics, Northampton, M.A., USA.

Quigley, J. M. and Van Order, R. (1995). Explicit Tests of Contingent Claims Models of Mortgage Default, Journal of Real Estate Finance and Economics, 11(2), 99-117.

Rebelo, S. (2005). Real Business Cycle Models: Past, Present, and Future, Scandinavian Journal of Economics, 107(2), 217–238.

Redding, S. J. & Rossi-Hansberg, E. (2017). Quantitative Spatial Economics, Annual Review of Economics, 9(1), 21-58.

Riddiough, T. (2022). Pension Funds and Private Equity Real Estate: History, Performance, Pathologies, Risks, chpt 15, in C. K. Y. Leung ed., Handbook of Real Estate and Macroeconomics, Northampton, M.A., USA.

Runge, J. & Hudson, N. (2020). Public Understanding of Economics and Economic Statistics, available at https://www.escoe.ac.uk/publications/public-understanding-of-economics-and-economic-statistics/

Sagi, J. S. (2021). Asset-level risk and return in real estate investments. Review of Financial Studies, 34, 3647–3694.

Saiz, A. (2010). The Geographic Determinants of Housing Supply, Quarterly Journal of Economics, 125(3), 1253-1296.

Sims, C. A. (2003). Implications of rational inattention. Journal of Monetary Economics, 50(3), 665-690.

Sinai, T. & Waldfogel, J. (2005). Do low-income housing subsidies increase the occupied housing stock?, Journal of Public Economics, 89(11–12), 2137-2164.

Soo, C. K. (2018). Quantifying Sentiment with News Media across Local Housing Markets, Review of Financial Studies, 31(10), 3689–3719.

Su, H. L. (2021). Financial Frictions, Capital Misallocation, and Input-Output Linkages, retrieved from https://drive.google.com/file/d/1F3GbAHBNO6Y65PAGD3BRvYDrVK6EgJU2/view .

Sun, W. & Yiu, M. (2023) Financial conditions and the well‐being of the real estate sector—A bottom‐up default analysis on five ASEAN Economies, Contemporary Economic Policy, 41, 41-60.

Tiwari, P. and Rao, J. (2022). The Housing Conundrum in India, chpt 4, in C. K. Y. Leung ed., Handbook of Real Estate and Macroeconomics, Northampton, M.A., USA.

Tonetii, C. (2018). Comment on “Tarnishing the golden and empire states: Land-use regulations and the U.S. economic slowdown,” by Herkenhoff, Ohanian, and Prescott, Journal of Monetary Economics, 93, 110-113.

Tse, C. Y. & Leung, C. K. Y. (2002). Increasing Wealth and Increasing Instability: The Role of Collateral, Review of International Economics, 10(1), 45-52.

Van Eyden, R., Gupta, R., Andre, C. & Sheng, X. (2022). The effect of macroeconomic uncertainty on housing returns and volatility: evidence from US state-level data, chpt 8, in C. K. Y. Leung ed., Handbook of Real Estate and Macroeconomics, Northampton, M.A., USA.

Van Nieuwerburgh, S. (2022). The Remote Work Revolution: Impact on Real Estate Values and the Urban Environment, NBER Working Paper No. 30662, Retrieved from http://www.nber.org/papers/w30662

Waltl, S. (2018). Estimating quantile-specific rental yields for residential housing in Sydney, Regional Science and Urban Economics, 68, 204-225.

Wang, P., and Xie, D. (2022). Housing Dynamics: Theory Behind Empirics, (Working paper No. 30516). Retrieved from http://www.nber.org/papers/w30516

Wu, J., Gyourko, J. and Deng, Y. (2012). Evaluating Conditions in Major Chinese Housing Markets. Regional Science and Urban Economics 42(3) 531-543.

Wu, J., Gyourko, J. and Deng, Y. (2016). Evaluating The Risk of Chinese Housing Markets: What We Know and What We Need to Know. China Economic Review 39: 91-114.

Xiao, W. (2022). Understanding probabilistic expectations –a behavioral approach, Journal of Economic Dynamics and Control, 139, Article 104416.

Yao, Y. (2021). Land and the Rise in the Dispersion of House Prices and Rents across U.S. Cities, retrieved from https://drive.google.com/file/d/1thZ9ry-sFeTRpYa_b0L0KHtxYJr3McS7/view

Yao, Y. (2023). Accounting for the decline in homeownership among the young, Contemporary Economic Policy, 41, 79-102.

Yılmaz, K. & Yeşilırmak, M. (2023). Access to transportation, residential segregation, and economic opportunity, Contemporary Economic Policy, 41, 103-127.