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Journal Article
The Weak Outlook for Residential Investment
Jordan Rappaport suggests supply-side factors will continue to constrain single-family home construction and sales into 2017.
Working Paper
Monetary Policy, Residential Investment, and Search Frictions: An Empirical and Theoretical Synthesis
Using a factor-augmented vector autoregression (FAVAR), this paper shows that residential investment contributes substantially to GDP following monetary policy shocks. Further, it shows that the number of new housing units built, not changes in the sizes of existing or new housing units, drives residential investment fluctuations. Motivated by these results, this paper develops a dynamic stochastic general equilibrium (DSGE) model where houses are built in discrete units and traded through searching and matching. The search frictions transmit shocks to housing construction, making them ...