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Discussion Paper
Residual Seasonality in GDP
With a second year in a row of unusually weak first-quarter growth, some analysts have argued that there may be residual seasonality in the GDP data, that is, a predictable seasonal pattern remains in the published data.
Discussion Paper
Another Look at Residual Seasonality in GDP
According to the Bureau of Economic Analysis, real GDP rose at an annual rate of 1.2 percent in the first quarter of this year, a step down from the 2.3 percent pace in the second half of last year. However, we argue in this note that residual seasonality is unlikely to be the primary reason for the slowdown in first-quarter growth this year.
Discussion Paper
Where Are The Construction Workers?
The labor market for construction workers suffered a massive shock in the wake of the housing bust, as demand for new homes dried up and firms rapidly shed workers.
Working Paper
The long and the short of household formation
One of the drivers of housing demand is the rate of new household formation, which has been well below trend in recent years, leading to persistent weakness in the housing market. This paper studies the determinants of household formation in the United States, including demographic and behavioral changes, and how they evolve over the long and short runs. There are three main findings: First, because older adults tend to live in smaller households, the aging of the U.S. population over the past 30 years has reduced the average household size, or equivalently, pushed up the headship rate and ...
Discussion Paper
An Early Evaluation of the Effects of the Pandemic on Living Arrangements and Household Formation
As with many other aspects of life—including the record-setting decline in employment—the COVID-19 pandemic has profoundly affected the living arrangements of millions of Americans. In this note, we document a fact that has as yet received little attention:
Working Paper
Supply constraints and housing market dynamics
Although the volatility of house prices is often ascribed to demand-side factors, constraints on housing supply have important and little-studied implications for housing dynamics. I illustrate the strong relationship in city-level data between the volatility of house prices and the regulation of new housing supply. I then employ a dynamic structural model of housing investment to estimate the effect of supply constraints on both the level of new construction and the responsiveness of investment to house prices. I find that supply constraints increase volatility through two channels: First, ...