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Housing deep-habit model: Mutual implications of macroeconomics and asset pricing

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  • Huang, MeiChi

Abstract

The paper develops a housing deep-habit model to explore linkages between macroeconomic decisions and asset pricing of nondurable and housing goods. Owing to heterogeneous characteristics of housing assets, the model sheds insights into the counter-cyclical property of housing markups.

Suggested Citation

  • Huang, MeiChi, 2012. "Housing deep-habit model: Mutual implications of macroeconomics and asset pricing," Economics Letters, Elsevier, vol. 116(3), pages 526-530.
    • Handle: RePEc:eee:ecolet:v:116:y:2012:i:3:p:526-530
    DOI: 10.1016/j.econlet.2012.04.073
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    References listed on IDEAS

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    Cited by:

    1. Yi Fan, 2017. "Does Adversity Affect Long-Term Consumption and Financial Behaviour? Evidence from China's Rustication Programme," ERES eres2017_148, European Real Estate Society (ERES).
    2. ZHANG, Wei-Bin, 2013. "Habit Formation And Preference Change In A Twosector Growth Model With Elastic Labor Supply," Academica Science Journal, Economica Series, Dimitrie Cantemir University, Faculty of Economical Science, vol. 1(2), pages 3-20, May.
    3. Fan, Yi, 2020. "Does adversity affect long-term financial behaviour? Evidence from China’s rustication programme," Journal of Urban Economics, Elsevier, vol. 115(C).
    4. Zhang Wei-Bin, 2013. "Habit Formation and Preference Change with Capital and Renewable Resources," Business Systems Research, Sciendo, vol. 4(2), pages 108-125, December.
    5. Wei-Bin Zhang, 2013. "Dynamic Interactions among Growth, Environmental Change, Habit Formation, and Preference Change," The International Journal of Economic Behavior - IJEB, Faculty of Business and Administration, University of Bucharest, vol. 3(1), pages 3-25, December.
    6. Wei-Bin ZHANG, 2012. "Habits, Saving Propensity, And Economic Growth," Scientific Bulletin - Economic Sciences, University of Pitesti, vol. 11(2), pages 3-15.
    7. Wei-Bin Zhang, 2016. "Population Growth And Preference Change In A Generalized Solow Growth Model With Gender Time Distributions," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 7-30, September.

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    More about this item

    Keywords

    Deep habits; Asset pricing; Counter-cyclical; Housing markup;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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