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Distributional Consequences of Surging Housing Costs under Schwabe’s Law

Housing costs have been increasing in most industrialized economies since WW2. The burden of rising housing cost is distributed unequally across income groups because the poor spend a larger fraction of their total consumption expenditures on housing …

Das House Kapital

The housing wealth-to-income ratio has been increasing in most developed economies since the 1950s. In this paper we provide a novel theory to explain this long-term pattern. We show analytically that house prices grow in the long term if i) the …

Bubble-Driven Business Cycles

Pronounced and persistent fluctuations in aggregate wealth and real activity - boom-bust episodes - have become more prevalent in recent history. In this paper, I provide a quantitative explanation for such boom-bust episodes based on rational …

Demographic Change, Household Portfolio, and Rates of Return

Housing and inequality: Renters vs Owners

Taxing Housing Wealth? Not Such a Good Idea After All!

Fiscal Autonomy and Fiscal Sustainability: Subnational Taxation and Public Indebtedness in Contemporary Spain

This study assesses fiscal sustainability in contemporary Spain at the regional level. Spain consists of 17 autonomous regions, two fiscal regimes differing in taxing autonomy, and two path-dependent types of communities with more and less …