This chapter surveys the literature on housing in macroeconomics. We first collect facts on
house prices and quantities in both the time series and the cross section of households and …

The past 25 years have represented two periods of extreme movements in US and global
house prices that appear to be much larger than can be easily explained by changes in …

We build a model of the US economy with multiple aggregate shocks that generate
fluctuations in equilibrium house prices. Through counterfactual experiments, we study the …

What is the aggregate real rate of return in the economy? Is it higher than the growth rate of
the economy and, if so, by how much? Is there a tendency for returns to fall in the long run …

Uncertainty about the future rises in recessions. But is uncertainty a source of business
cycles or an endogenous response to them, and does the type of uncertainty matter? We …

An increase in the household debt to GDP ratio predicts lower GDP growth and higher
unemployment in the medium run for an unbalanced panel of 30 countries from 1960 to …

We follow a representative panel of US borrowers to study the suspension of household
debt payments (debt forbearance) during the COVID-19 pandemic. Between March and …

What is the role of the financial sector in explaining business cycles? This question is as old
as the field of macroeconomics, and an extensive body of research conducted since the …

In this essay, we discuss the emerging literature in macroeconomics that combines
heterogeneous agent models, nominal rigidities, and aggregate shocks. This literature …

We propose a theory of indebted demand, capturing the idea that large debt burdens lower
aggregate demand, and thus the natural rate of interest. At the core of the theory is the …