working_paper

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 …