Home production with endogenous growth

Homework in Monetary Economics: Inflation, Home Production, and the Production of Homes

“…Since the markup increases with i, housing prices de ‡ated by consumer prices may go down, but housing prices de ‡ated by producer prices must go up with in ‡ation. 24 We can also de ‡ate housing prices by the money supply, as we did in the data presentation 24 One can also look at nominal prices, and derive…”

Macroeconomics and housing: a review of the literature

“…23 As an alternative, Fisher (1997) explains residential and non-residential investment comovement by assuming complementarity between the household and business capital in goods production. In an endogenous growth framework, Einarsson and Marquis (1997) show that a positive productivity shock in production leads to time re-allocation, from human capital accumulation to market goods and home production. Consequently, business and residential investment both increase, thereby creating an observed comovement.…”

Home production and endogenous economic growth

“…While numerous endogenous growth models that rely upon human capital accumulation have focused upon the role of formal education (e.g., Lucas, 1988;Barro, 2001), there has been little or no attention to informal variants of education. This is true even of growth models with home production (e.g., Rosenzweig and Wolpin, 1993;Einarsson and Marquis, 1997). 2 We find the absence of theoretical work relating consumption and leisure activities to human capital accumulation and growth to be surprising, for several reasons.…”