What Drives the Owner-Occupied and Rental Housing Markets? Evidence from an Estimated DSGE Model

Sun, Xiaojin; Tsang, Kwok Ping

doi:10.2139/ssrn.2511019

Cited by 5 publications

(12 citation statements)

References 35 publications

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“…The consumption good is produced with labor and capital. In contrast to Iacoviello and Neri (2010) and Sun and Tsang (2017) this model drops the use of land. The production function is…”

Section: Entrepreneursmentioning

confidence: 91%

“…With a rental market included in the model, impatient households otherwise fully substitute owner-occupied housing with rental services. The other way is that the model opens up the tenure choice of the representative consumer as in Mora-Sanguinetti and Rubio (2014), Rubio (2015) or Sun and Tsang (2017). Representative agents are in a position to choose whether to live in an owned house or to rent.…”

Section: Related Literaturementioning

confidence: 99%

“…The two structurally symmetric countries (Home and Foreign) are of sizes n and (1 − n), respectively. Each country is inhibited by various agents, two continuous households, namely savers and borrowers, as well as by entrepreneurs and relies on the model by Sun and Tsang (2017) 1 that builds on the work of Iacoviello and Neri (2010). The firms in each country produce two differentiated products.…”

Section: The Modelmentioning

confidence: 99%

“…Further, the entrepreneurs act as landlords and offer rental services to both types of households. 2 In contrast to Iacoviello and Neri (2010) and Sun and Tsang (2017) we simplify the model at some points (e.g. treatment of land in the model or heterogeneity between households through parameters) and add parts that seem relevant with respect to the research question (e.g.…”

Section: The Modelmentioning

confidence: 99%

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Influence of the Facility Management of the Modern Buildings on their Utility and Market Value

Hirsch¹

2019

26th Annual European Real Estate Society Conference

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The euro area economies are bound together by monetary policy while still inhibiting many heterogeneities. Amongst them the share of home owners. This paper presents a medium scale New Keynesian DSGE model of the euro area with an extensive housing market which explicitly models endogenous tenure choice. Results from the calibrated model indicate that there are various parameters determining the ownership rate. Dependent on the drivers of the heterogeneity shocks have substantial effects on real variables when homeownership rates differ across countries.

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“…The consumption good is produced with labor and capital. In contrast to Iacoviello and Neri (2010) and Sun and Tsang (2017) this model drops the use of land. The production function is…”

Section: Entrepreneursmentioning

confidence: 91%

Section: Related Literaturementioning

confidence: 99%

Section: The Modelmentioning

confidence: 99%

Section: The Modelmentioning

confidence: 99%

See 2 more Smart Citations

Influence of the Facility Management of the Modern Buildings on their Utility and Market Value

Hirsch¹

2019

26th Annual European Real Estate Society Conference

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“…We expect tying of home financing contract to rental would make price of housing more stable since generally rental is found to be stable. In this respect Sun & Tsang (2017) find that some rigidity in rental contracts plays an important role in explaining the smoothness of rents and relative volatility of the price-rent ratio under conventional setting. 7.…”

Section: Introductionmentioning

confidence: 96%

Theoretical Impact of Enhanced Musharakah Mutanaqisah Home Financing on Real Estate Prices

Asadov

Ibrahim

2018

JIMF

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3This paper theoretically analyzes two alternative modes of home financing. The first mode is the conventional housing loan and the other is Enhanced Musharakah Mutanaqisah (EMM) home financing. Our results reveal the EMM based setting is superior to the conventional housing loans in at least two aspects. These are the prevention of house price inflation in all phases of economic business cycle and the smoothening of real estate cycles. This means that, under the EMM, the risk of real estate bubble formation is subdued, which should prove to be welfare improving.

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Turkish Housing Market Dynamics: An Estimated DSGE Model

Yıldırım

İvrendi

2021

Margin: The Journal of Applied Economic Research

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In this article, we investigate the underlying driving dynamics behind house price variations in Turkey by estimating a dynamic stochastic general equilibrium (DSGE) model in which the housing market and collateral constraints are included. The model also analyses the interaction between macroeconomic variables and the housing market by making policy simulations under different loan-to-value (LTV) ratios, which are used as a housing market-specific economic policy tool. The model is extended by including the traditional Taylor rule with house prices for representing monetary policy. Our findings show that house prices in Turkey are largely explained by housing preference shocks. Besides, we find that monetary policy shock plays a small role in determining the variables of the housing market in the short-term period. However, the magnitude of the impact of housing market shocks on the rest of the economy depends on the LTV ratios. The higher the LTV ratio, the higher are the effects of the government’s housing policy instrument for stabilising the housing market on real macroeconomic variables such as consumption and output in Turkey. Finally, our findings show that the fluctuations in house prices have not played a substantial role in the monetary policy reaction function of Turkey. JEL Codes: E32, E52, E44, E51, R31

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What Drives the Owner-Occupied and Rental Housing Markets? Evidence from an Estimated DSGE Model

Cited by 5 publications

References 35 publications

Influence of the Facility Management of the Modern Buildings on their Utility and Market Value

Influence of the Facility Management of the Modern Buildings on their Utility and Market Value

Theoretical Impact of Enhanced Musharakah Mutanaqisah Home Financing on Real Estate Prices

Turkish Housing Market Dynamics: An Estimated DSGE Model

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