Housing and the business cycle
By: Morris Davis and Jonathan Heathcote.
Contributors: Heathcote, Jonathan.
Series: Finance and economics discussion series ;; 2004-11; Finance and economics discussion series (Online) ;; 2004-11.
Publisher: Federal Reserve Board
Published: 2004
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Description: "In the United States, the percentage standard deviation of residential investment is more than twice that of non-residential investment.  In addition, GDP, consumption, and both types of investment co-move positively.  We reproduce these facts in a calibrated multi-sector growth model where construction, manufacturing and services are combined, in different proportions, to produce consumption, business investment and residential structures.  New housing requires land in addition to new structures.  The model can also account for important features of industry-level data.  In particular, hours and output in all industries are positively correlated, and are most volatile in construction"--Federal Reserve Board web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 7/9/2004.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.