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Housing Over the Life Cycle: A Structural Estimation

Author

Listed:
  • Rui Yao

    (Baruch College)

  • Haiyong Liu

    (East Carolina University)

  • Wenli Li

    (Federal Reserve Bank of Philadelphia)

Abstract

understanding of housing market developments on general activities. We use the estimated model to conduct policy experiments and find that consumption responds nonlinearly to changes in housing wealth with an average marginal propensity to consume out of housing wealth of about 5 percent.

Suggested Citation

  • Rui Yao & Haiyong Liu & Wenli Li, 2008. "Housing Over the Life Cycle: A Structural Estimation," 2008 Meeting Papers 701, Society for Economic Dynamics.
    • Handle: RePEc:red:sed008:701
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    References listed on IDEAS

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    5. Wenli Li & Rui Yao, 2007. "The Life-Cycle Effects of House Price Changes," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 39(6), pages 1375-1409, September.
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    Cited by:

    1. Thompson, Daniel, 2021. "The Rescue of Fannie Mae and Freddie Mac - Module E: The Housing and Economic Recovery Act of 2008," Journal of Financial Crises, Yale Program on Financial Stability (YPFS), vol. 3(1), pages 387-401, April.
    2. Song, In Ho, 2010. "House Prices and Consumption," MPRA Paper 27481, University Library of Munich, Germany.

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