scholarly journals Financial Intermediation, House Prices, and the Distributive Effects of the U.S. Great Recession

2013 ◽  
Author(s):  
Dominik Menno ◽  
Tommaso Oliviero
Keyword(s):  
Great Recession ◽  
Financial Intermediation ◽  
House Prices ◽  
The U.S

scholarly journals International Real Estate Review

2018 ◽  
Vol 21 (1) ◽  
pp. 71-92
Author(s):  
Mohsen Bahmani-Oskooee ◽  
◽  
Seyed Hesam Ghodsi ◽  
Keyword(s):  
Real Estate ◽  
Empirical Evidence ◽  
Unemployment Rate ◽  
Great Recession ◽  
Nonlinear Models ◽  
House Prices ◽  
The Great Recession ◽  
Asymmetric Causality ◽  
Asymmetric Cointegration ◽  
The U.S

The Great Recession of 2008 in the U.S. was mostly attributed to the U.S. housing market bubble that came to an end in 2007. In this paper, we provide empirical evidence on the above conjecture by detecting the asymmetric causality between house prices and unemployment rate in each state of the U.S. We find that indeed, decreases in house prices cause unemployment in 39 states. There is evidence in only 19 states that an increase in house prices causes unemployment. Since an asymmetric analysis requires the use of nonlinear models, we use nonlinear models and find evidence of asymmetric cointegration between the two variables in all states.

Real Estate

2017 ◽  
Author(s):  
Stefan Homburg
Keyword(s):  
Real Estate ◽  
Great Recession ◽  
House Prices ◽  
Borrowing Constraints ◽  
Macroeconomic Models ◽  
Land Prices ◽  
The Great Recession ◽  
Quantitative Importance

Chapter 6 examines real estate as a neglected feature of actual economies. It begins with an empirical overview demonstrating the preeminent role of land as a part of nonfinancial wealth. Whereas many macroeconomic models represent nonfinancial wealth by a symbol K that is interpreted as machines and equipment (if not robots), the text makes clear that such items are of minor quantitative importance. In contemporary economies, nonfinancial wealth consists chiefly of real estate. This is the proper reason so many analysts conjecture a link between house prices and the Great Recession. Changes in house prices (primarily changes in land prices) operate on the economy through their influence on nonfinancial wealth. Nonfinancial wealth affects consumption directly and investment indirectly since it relaxes or tightens borrowing constraints. Building on the results obtained in previous chapters, the text studies housing manias and leverage cycles and relates its main findings to US data.

scholarly journals Money and credit during normal times and house price booms: evidence from time-frequency analysis

Empirica ◽  
2019 ◽  
Vol 47 (4) ◽  
pp. 835-861
Author(s):  
Maciej Ryczkowski
Keyword(s):  
Great Recession ◽  
House Prices ◽  
House Price ◽  
Industrialized Countries ◽  
Time Frequency ◽  
The Great Recession ◽  
Time Period ◽  
Price Boom ◽  
The Us ◽  
Short Run

Abstract I analyse the link between money and credit for twelve industrialized countries in the time period from 1970 to 2016. The euro area and Commonwealth Countries have rather strong co-movements between money and credit at longer frequencies. Denmark and Switzerland show weak and episodic effects. Scandinavian countries and the US are somewhere in between. I find strong and significant longer run co-movements especially around booming house prices for all of the sample countries. The analysis suggests the expansionary policy that cleans up after the burst of a bubble may exacerbate the risk of a new house price boom. The interrelation is hidden in the short run, because the co-movements are then rarely statistically significant. According to the wavelet evidence, developments of money and credit since the Great Recession or their decoupling in Japan suggest that it is more appropriate to examine the two variables separately in some circumstances.

scholarly journals Fiscal Policy and Aggregate Demand in the U.S. Before, During and Following the Great Recession

2017 ◽  
Vol 2017 (061) ◽  
Author(s):  
David Cashin ◽  
◽  
Jamie Lenney ◽  
Byron Lutz ◽  
William Peterman ◽  
...  
Keyword(s):  
Fiscal Policy ◽  
Great Recession ◽  
Aggregate Demand ◽  
The Great Recession ◽  
The U.S

scholarly journals Recent Trends in U.S. Childbearing Intentions

2021 ◽  
Author(s):  
Caroline Sten Hartnett ◽  
Alison Gemmill
Keyword(s):  
National Survey ◽  
Great Recession ◽  
Population Composition ◽  
Important Contributor ◽  
The Great Recession ◽  
Childbearing Intentions ◽  
Family Growth ◽  
Recent Trends ◽  
Shed Light ◽  
The U.S

The U.S. period TFR has declined steadily since the Great Recession, to 1.73 children in 2018, the lowest level since the 1970s. This pattern could mean that current childbearing cohorts will end up with fewer children than previous cohorts or this same pattern could be an artifact of a tempo distortion if individuals are simply postponing births they plan to eventually have. In this research note, we use data on current parity and future intended births from the 2006-2017 National Survey of Family Growth to shed light on this issue. We find that total intended parity declined (from 2.26 in 2006-2010 to 2.16 children in 2013-2017), and the proportion of women intending to remain childless increased slightly. Decomposition indicated that the decline was not due to changes in population composition, but rather changes in the subgroup rates themselves. The decline in intended parity is particularly notable at young ages and among Latinxs. These results indicate that although tempo distortion is likely an important contributor to the decline in TFR, it is not the sole explanation: U.S. individuals are intending to have fewer children than their immediate predecessors, which may translate into a decline in cohort completed parity. However, the change in intended parity is modest and average intended parity remains above two children.

scholarly journals Evaluating the Effects of the Home Affordable Modification Program

2021 ◽  
Author(s):  
Richard Cóndor
Keyword(s):  
General Equilibrium ◽  
Great Recession ◽  
Heterogeneous Agents ◽  
Idiosyncratic Risk ◽  
The Great Recession ◽  
Heterogeneous Agents Model ◽  
The U.S

The Home Affordable Modification Program (HAMP) was a loan modification program introduced in 2009, in the U.S., to assist highly indebted homeowners with avoiding foreclosure. This program also encouraged private lenders to offer more sustainable modifications. This paper studies the role of HAMP in preventing higher foreclosures rates during and after the Great Recession, in the context of a general-equilibrium heterogeneous-agents model with two types of households (Borrowers and Savers), uninsurable idiosyncratic risk, and both private and HAMP modifications. The main result is that, without HAMP, the peak in the foreclosure rate could have been 50% larger (3.2 percent vs 2.2 percent in data).

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