Housing Price Dynamics and Economics

IREUS researchers evaluate the economic impact of housing wealth, which includes saving-retirement puzzles, bequest motives, wealth and consumption relationships, and others. At the macro-level, the research agenda includes studies of interactions between housing market and the real economy. The researchers also examine the real consequences of housing market booms and busts; and the impact on consumption, investment, as well as labor market dynamics.

Households use borrowing from banks and financial institutions to finance housing purchases; and therefore, housing finance and mortgage markets are closely intertwined with housing markets in most countries across the world. Housing market shocks could cause large housing price declines which in turn could trigger large scale mortgage defaults, and destabilize the financial market. The U.S. subprime crisis is closely linked to the crash in its housing market. Studying the relationships between mortgage markets and the housing market is an important research agenda of IREUS.

Current Research Projects

Spatially-Adjusted Real Estate Price Indices

 

Selected Publications

Agarwal S, Amromin G, Ben-David I, Chomsisengphet S, and Evanoff D. 2019. Financial Education versus Costly Counseling: How to Dissuade Borrowers from Choosing Risky Mortgages? American Economic Journal: Economic Policy.

Agarwal S, Green R, Rosenblatt E, Yao VW, and Zhang J. 2018. Gender Difference and Intra-Household Economic Power in Mortgage Signing Order. Journal of Financial Intermediation.

Agarwal S, Pan J, and Qian W. 2018. Age of Decision: Pension Savings Withdrawal and Consumption and Debt Responses. Management Science.

Agarwal S, and Qian W. 2017. Access to Home Equity and Consumption: Evidence from a Policy Experiment. Review of Economics and Statistics 99 (1): 40-52.

Balasubramaniam V, Badarinza C, and Ramadorai T. 2017. The Indian Household Finance Landscape. India Policy Forum 13.

Campbell JY, Badarinza C, and Ramadorai T. 2017. What Calls to ARMs? International Evidence on Interest Rates and the Choice of Adjustable-Rate Mortgages. Management Science 64 (5): 1975-2471.

Campbell JY, and Ramadorai T. 2016. International Comparative Household Finance. Annual Review of Economics 8: 111-144.

Coulson EN, Dong Z, and Sing TF. 2019. Estimating Supply Functions for Residential Real Estate Attributes. Real Estate Economics.

Deng Y, McMillen DP, and Sing TF. 2012. Private Residential Price Indices in Singapore: A Matching Approach. Regional Science and Urban Economics 42 (3): 485-494.

Fan Y, Wu J, and Yang Z. 2017. Informal Borrowing and Home Purchase: Evidence from Urban China. Regional Science and Urban Economics 67: 108-118.

Fan Y, Yang Z, and Yavas A. 2019. Understanding Real Estate Price Dynamics: The Case of Housing Prices in Five Major Cities of China. Real Estate Economics.

Fan Y, Yang Z, and Zhao L. 2018. A Reexamination of Housing price and Household Consumption in China: The Dual Role of Housing Consumption and Housing Investment. Journal of Real Estate Finance and Economics 56 (3): 472-499.

Fan Y, and Yavas A. 2019. How Does Mortgage Debt Affect Household Consumption? Micro Evidence from China. Real Estate Economics.

Glaeser E, Huang W, Ma Y, and Shleifer A. 2017. A Real Estate Boom with Chinese Characteristics. Journal of Economic Perspectives 31 (1): 93-116.

 

 

Working Papers

Agarwal S, Badarinza C, and Qian W. 2019. The Effectiveness of Housing Collateral Tightening Policy.

Agarwal S, Deng Y, Gu Q, He J, Qian W, and Ren Y. 2019. Mortgage Debt, Hand-to-Mouth Households, and Monetary Policy Transmission.

Agarwal S, Li K, Qin Y, Wu J, and Yan J. 2019. Tax Evasion, Capital Gains Taxes, and the Housing Market.

Agarwal S, Qian W, and Zou X. 2017. Thy Neighbor's Misfortune: Peer Effects on Consumptoin.

Badarinza C. 2018. Mortgage Debt and Social Externalities.

Badarinza C.  2019. The Information Role of Housing Market Liquidity.

Fan Y. 2019. Demand Shocks, Price Stickiness and Frequency-Dependent Heterogeneity in Housing Market Dynamics.

Fan Y, McMillen DP, and Sing TF. 2019. Regional Dynamics of Housing Price: A Locally Weighted Approach.

Fan Y, and Yang Z. 2019. How is Financial Literacy Iimportatnt in Emerging Mortgage Market? Evidence from Urban China.

Gu Q, He J, and Qian W. 2019. Housing Boom and Shirking.

Huang Y, Li Q, Liow KH, and Zhou X. 2019. Measurement and Causes of Housing Bubble in a Small Open Economy: The Case of Singapore.

 

 

Research Team

AGARWAL, Sumit

BADARINZA, Cristian

FAN, Ying

HUANG, Wei

QIAN, Wenlan

SING, Tien Foo