Replication data for: A Macroeconomic Model of Price Swings in the Housing Market

Rodolfo Manuelli, Adrian Peralta-Alva & Carlos Garriga
This paper shows that a macro model with segmented financial markets can generate sizable movements in housing prices in response to changes in credit conditions. We establish theoretically that reductions in mortgage rates always have a positive effect on prices, whereas the relaxation of loan-to-value constraints has ambiguous effects. A quantitative version of the model under perfect foresight accounts for about one-half of the observed price increase in the United States in the 2000s. When...
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