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 …

Some booms in housing prices are followed by busts. Others are not. It is generally difficult
to find observable fundamentals that are useful for predicting whether a boom will turn into a …

In this chapter, we review and discuss the large body of research that has developed over
the past 10-plus years that explores the interconnection of macroeconomics, finance, and …

We develop a new model of the mortgage market that emphasizes the role of the financial
sector and the government. Risk tolerant savers act as intermediaries between risk averse …

Fundamental determinants of housing prices which affect housing demand and supply are
the most common in developed countries. These are economic and financial determinants …

We use a quantitative asset pricing model to “reverse‐engineer” the sequences of shocks to
housing demand and lending standards needed to replicate the boom–bust patterns in US …

We use a strategic household survey to study the sensitivity of intended homeownership
decisions to financing constraints. We find that the average stated likelihood of buying a …

We analyze the removal of the credit-risk guarantees provided by the government-
sponsored enterprises (GSEs) in a model with agents heterogeneous in income and house …

This paper quantitatively accounts for the cyclical dynamics of key macroeconomic housing
and mortgage market variables using a tractable, search‐theoretic model of housing with …

This paper makes two contributions. On the theory side, I show that increases in the demand
for housing may generate trade deficits without need for the standard ingredients used by …