What can an open-economy DSGE model tell us about Hong Kong's housing market?
Funke, Michael; Paetz, Michael (22.11.2010)
Numero
19/2010Julkaisija
Bank of Finland
2010
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-201408072223Tiivistelmä
This paper develops an open-economy DSGE model with a housing-market sector and a borrowing constraint. Contrary to standard conventions, domestic households are allowed to invest in foreign housing and vice versa. Using Bayesian methods, the model is applied to data for Hong Kong. The results show that Hong Kong s housing market is quite open to foreign investment, and perhaps more significantly, that variations in the loan-to-value ratio and housing preference shocks largely explain business cycle volatility.
Julkaisuhuomautus
Published also in Journal of Housing Economics, Volume 22, Issue 1, March 2013, Pages 62-76 as "Housing prices and the business cycle: An empirical application to Hong Kong".
Available for replication in the Macroeconomic Model Data Base (http://www.macromodelbase.com/) that provides various tools for systematic DSGE model comparison and replication.
Available for replication in the Macroeconomic Model Data Base (http://www.macromodelbase.com/) that provides various tools for systematic DSGE model comparison and replication.