Housing dynamics: incomplete markets and adjustment cost

• Autores: Antonio Kamal Romero Sookoo
• Localización: XVIII Encuentro de economía pública, 2011
• Idioma: español
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• Resumen

  • Empirical facts show that housing is one of the most important components of wealth for most families in the U.S.. Also durable goods have important character- istics that can potentially a ect the pattern of wealth (asset) accumulation, such as credit constraints, durability amongst others. In order to analyze quantitatively the e ects on asset accumulation and durables and wealth distributions, we in- clude an illiquid asset and collateral credit in an otherwise standard heterogenous agents model. Speci cally, a two asset version of Huggett (1993) is presented, and the equilibrium properties evaluated. We depart from previous literature as we don't rely on an extremely persistent and volatile income process, we concentrate on how much inequality the inclusion of the indivisible durable good generates in the presence of liquidity constraints.