The Effect of Housing Market Fluctuations on Macroeconomy: A DSGE Approach

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

MAHMOODI ELAHE; NASROLLAHI ZAHRA; YAVARI KAZEM

Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: JOURNAL OF APPLIED THEORIES OF ECONOMICS Year:2019 | Volume:6 | Issue:2 Page(s): 239-268

Download Full-Text

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Persian Verion

View:

646

Download:

Cites:

Information Journal Paper

Title

The Effect of Housing Market Fluctuations on Macroeconomy: A DSGE Approach

Author(s)

MAHMOODI ELAHE | NASROLLAHI ZAHRA | YAVARI KAZEM | Issue Writer Certificate

Keywords

Housing marketQ2

Business cycleQ1

DSGEQ1

Abstract

The main objective of this study is to examine the effect of Housing market on real sector of economy and to identify its role in Business cycle process. To this end, the paper has used a Dynamic Stochastic General Equilibrium Model. The specific feature of this models is that it has containes two types of households: Patient and Impatient. Patient households had greater discount factor. They save and accumulate capital and they produce goods and services. Patient households also supply funds to impatient households who have smaller discount factor. The maximum amount which impatient households can borrow depends on the value of house owned by them. In fact, this assumption tries to impose the collateral constraint which emphasized by Bernanke (1995) in the model. This channel has a crucial role in transmitting the Housing market shocks to real sector. To estimate the model, we used both Calibration and Bayesian approaches. We estimated the model using quarterly data over the period 2005Q1– 2017Q4. Results of IRFs indicated that a positive shock to housing preference (housing demand shock) generated an increase in Real Housing Prices, Real Investment in Housing and Non-housing Sectors, Real Consumption and Real GDP. Also to identify the role of collateral effect in the positive relationship between housing and real sector we set the amount of collateral effect in the model equal to zero and then we calculated IRFs again based on this assumption. Results showed that collateral effect have played a key role in transmission mechanism of housing shocks to real sector.

Cites

No record.

References

No record.

Cite

APA: Copy

MAHMOODI, ELAHE, NASROLLAHI, ZAHRA, & YAVARI, KAZEM. (2019). The Effect of Housing Market Fluctuations on Macroeconomy: A DSGE Approach. JOURNAL OF APPLIED THEORIES OF ECONOMICS, 6(2 ), 239-268. SID. https://sid.ir/paper/384485/en

Vancouver: Copy

MAHMOODI ELAHE, NASROLLAHI ZAHRA, YAVARI KAZEM. The Effect of Housing Market Fluctuations on Macroeconomy: A DSGE Approach. JOURNAL OF APPLIED THEORIES OF ECONOMICS[Internet]. 2019;6(2 ):239-268. Available from: https://sid.ir/paper/384485/en

IEEE: Copy

ELAHE MAHMOODI, ZAHRA NASROLLAHI, and KAZEM YAVARI, “The Effect of Housing Market Fluctuations on Macroeconomy: A DSGE Approach,” JOURNAL OF APPLIED THEORIES OF ECONOMICS, vol. 6, no. 2 , pp. 239–268, 2019, [Online]. Available: https://sid.ir/paper/384485/en

Related Journal Papers

No record.

Related Seminar Papers

No record.

Related Plans

No record.

Recommended Workshops