Land-price dynamics and macroeconomic fluctuations
By: Zheng Liu, Pengfei Wang, Tao Zha
Contributors: Wang, Pengfei; Zha, Tao; National Bureau of Economic Research
Series: NBER working paper series -- working paper 17045; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 17045.
Publisher: National Bureau of Economic Research
Published: 2011
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] /
Description: "We argue that positive co-movements between land prices and business investment are a driving force behind the broad impact of land-price dynamics on the macroeconomy.  We develop an economic mechanism that captures the co-movements by incorporating two key features into a DSGE model: We introduce land as a collateral asset in firms' credit constraints and we identify a shock that drives most of the observed fluctuations in land prices.  Our estimates imply that these two features combine to generate an empirically important mechanism that amplifies and propagates macroeconomic fluctuations through the joint dynamics of land prices and business investment"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 8/2/2011.

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