Details

Autor(en) / Beteiligte

• Liu, Zheng
• Wang, Pengfei
• Zha, Tao

Titel

LAND-PRICE DYNAMICS AND MACROECONOMIC FLUCTUATIONS

Ist Teil von

• Econometrica, 2013-05, Vol.81 (3), p.1147-1184

Ort / Verlag

Oxford, UK: Econometric Society

Erscheinungsjahr

2013

Link zum Volltext

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• 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.