Residential investment before the mid 1980s was very volatile and since then it has been much less volatile. Before the 1980s mortgage markets were highly regulated and mortgage opportunities were limited, while large numbers of baby-boom households were acquiring their first house. Since 1980 the mortgage market has been deregulated, many new mortgage opportunities became available, and the number of baby-boomers buying their first house began to decline. We examine how regulatory change, mortgage innovation, and life-cycle housing choices contribute to the aggregate residential investment dynamics. Our analysis is based on a life-cycle housing model consistent with evidence on housing choices from the NLSY
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Paper provided by Society for Economic Dynamics in its series 2006 Meeting Papers with number
432.
Length: Date of creation: 03 Dec 2006 Date of revision: Handle: RePEc:red:sed006:432
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Find related papers by JEL classification: E22 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity R21 - Urban, Rural, and Regional Economics - - Household Analysis - - - Housing Demand J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends and Forecasts
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