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 …

Abstract The Real Business Cycle (RBC) research program has grown specularly over the
last decade, as its concepts and methods have diffused into mainstream macroeconomics …

Much of macroeconomics is concerned with the allocation of physical capital, human capital,
and labor over time and across people. The decisions on savings, education, and labor …

This paper studies asset returns in different versions of the one-sector real business cycle
model. We show that a model with habit formation preferences and capital adjustment costs …

Previous authors have documented a dramatic decline in food expenditures at the time of
retirement. We show that this is matched by an equally dramatic rise in time spent shopping …

This paper considers a consumption-based asset pricing model where housing is explicitly
modeled both as an asset and as a consumption good. Nonseparable preferences describe …

In the United States, the percentage standard deviation of residential investment is more
than twice that of nonresidential investment. In addition, GDP, consumption, and both types …

We use scanner data and time diaries to document how households substitute time for
money through shopping and home production. We document substantial heterogeneity in …

New evidence from the 1980, 1990, and 2000 Decennial Census of Housing indicates that
expenditure shares on housing are constant over time and across US metropolitan statistical …

We revisit two well-known facts regarding life cycle expenditures: the “hump”-shaped profile
of nondurable expenditures and the increase in cross-household consumption inequality …