The cyclical behavior of the Beveridge Curve in the housing market

• 成果类型: Article
• 署名作者: Gabrovski, Miroslav; Ortego-Marti, Victor
• 署名单位: University of Hawaii System; University of Hawaii Manoa; University of California System; University of California Riverside
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2019.03.003
• 发表日期: 2019
• 页码: 361-381
• 关键词: Housing market; business cycles; search and matching; Beveridge curve

摘要

This paper develops a business cycle model of the housing market with search frictions and entry of both buyers and sellers. The housing market exhibits a well-established cyclical component, which features three stylized facts: prices move in the same direction as sales and the number of houses for sale, but opposite to the time it takes to sell a house. These stylized facts imply that in the data housing vacancies and the number of buyers are positively correlated, i.e. that the Beveridge Curve is upward sloping. A baseline search and matching model of the housing market is unable to match these stylized facts because it inherently generates a downward sloping Beveridge Curve. With free entry of both buyers and sellers, our model reproduces the positive correlation between prices, sales and vacancies, and matches the stylized facts qualitatively and quantitatively. (C) 2019 Elsevier Inc. All rights reserved.