Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/101000
Authors: 
Liu, Zheng
Miao, Jianjun
Zha, Tao
Year of Publication: 
2013
Series/Report no.: 
Working Paper, Federal Reserve Bank of Atlanta 2013-6
Abstract: 
We integrate the housing market and the labor market in a dynamic general equilibrium model with credit and search frictions. The model is confronted with the U.S. macroeconomic time series. Our estimated model can account for two prominent facts observed in the data. First, the land price and the unemployment rate tend to move in opposite directions over the business cycle. Second, a shock that moves the land price is capable of generating large volatility in unemployment. Our estimation indicates that a 10 percent drop in the land price leads to a 0.34 percentage point increase in the unemployment rate (relative to its steady state).
Subjects: 
Housing and labor markets
volatility
match value of employment
marginal utility of consumption
credit channel
labor channel
JEL: 
E21
E27
E32
E44
Document Type: 
Working Paper

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