Land-price dynamics and macroeconomic fluctuations with nonseparable preferences

Gong, Liutang and Wang, Chan and Zhao, Fuyang and Zou, Heng-fu,(0217), Land-price dynamics and macroeconomic fluctuations with nonseparable preferences. , Journal of Economic Dynamics & Control, UNSPECIFIED

[thumbnail of Land-price-dynamics-and-macroeconomic-fluctuati_2017_Journal-of-Economic-Dyn.pdf] Text
Restricted to Repository staff only

Download (514kB) | Request a copy


In this paper, we introduce a complementary relationship between consumption and labor hours by revising the household’s period utility function in Liu et al. (2013). The revi- sion concomitantly allows for a finite Frisch elasticity of labor supply and a stronger con- sumption smoothing motive. We find that, in general, the estimation of Liu et al. (2013) is quite robust. In addition, the propagation mechanism of the credit constraint triggered by a housing demand shock still persists. However, the amplification effect of the credit con- straint triggered by the housing demand shock on key macroeconomic variables is greatly muted. We also find that, except for land price fluctuations, the housing demand shock cannot act as the primary force to drive the fluctuations in other macroeconomic variables.
Keywords : Collateral constraint Housing demand shock Nonseparable preferences Macroeconomic fluctuations, UNSPECIFIED
Journal or Publication Title: Journal of Economic Dynamics & Control
Volume: 83
Item Type: Article
Subjects: Ekonomi Pembangunan
Depositing User: Elok Inajati
Date Deposited: 30 Dec 2019 07:41
Last Modified: 30 Dec 2019 07:41

Actions (login required)

View Item
View Item