Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174381
Authors: 
Ryoo, Soon
Year of Publication: 
2015
Series/Report no.: 
Working Paper, University of Massachusetts, Department of Economics 2015-08
Abstract: 
This paper examines macroeconomic dynamics of household debt and housing prices. Drawing on Minsky's insights into financial instability and cycles, our framework combines household debt dynamics with behavioral asset price dynamics in a Keynesian macro model. We show that endogenous boom-bust cycles can emerge through the interaction between household debt and housing price dynamics. The resulting long waves are combined with a Kaldorian model of short-run business cycles.
Subjects: 
household debt
asset bubble
limit cycle
financial instability hypothesis
JEL: 
E12
E32
E44
Document Type: 
Working Paper

Files in This Item:
File
Size
694.91 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.