Search and Credit Frictions in the Housing Market

Miroslav Gabrovski and Victor Ortego-Marti

No 201816, Working Papers from University of California at Riverside, Department of Economics

Abstract: This paper develops a model of the housing market with search and credit frictions. The interaction between the two frictions gives rise to a novel channel through which the financial sector affects prices and liquidity in the housing market. Furthermore, an interesting feature of the model is that both frictions combined lead to multiple equilibria. A numerical exercise suggests that credit shocks have a relatively larger impact on mortgage debt and liquidity than on prices.

Keywords: Housing market; Credit Frictions; Search and Matching; Multiple Equilibria; Mort- gages (search for similar items in EconPapers)
JEL-codes: E2 E32 R21 R31 (search for similar items in EconPapers)
Date: 2018-09
New Economics Papers: this item is included in nep-ban, nep-dge, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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https://economics.ucr.edu/repec/ucr/wpaper/201816.pdf First version, 2018 (application/pdf)

Related works:
Journal Article: Search and credit frictions in the housing market (2021)
Working Paper: Search and Credit Frictions in the Housing Market (2020)
Working Paper: Search and Credit Frictions in the Housing Market (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ucr:wpaper:201816

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