22-31.001 Housing and the Macroeconomy

Lehrende: Dr. Matthias Mand

Veranstaltungsart: Interaktive Lehrveranstaltung

Anzeige im Stundenplan:

Semesterwochenstunden: 3

Credits: 6,0

Unterrichtssprache: Englisch

Min. | Max. Teilnehmerzahl: - | 45

Kommentare/ Inhalte:
Recent developments in housing markets have demonstrated the importance of the
housing sector for macroeconomic outcomes. Over the past decade, several countries
experienced sharply rising house prices followed by severe slumps. These boom-bust
cycles in the housing sector had dramatic consequences for the financial system and
severe repercussions on the real economy. In the U.S., the collapse in house prices
and residential construction was accompanied by a surge in mortgage delinquencies and
foreclosures as well as a dramatic tightening in mortgage standards and fall in household
leverage. This housing bust has led to a financial crisis, which in turn has caused the
Great Recession. These developments have confronted policy makers with a number of
serious challenges for financial stability and prompted a great deal of new research on
housing and mortgage markets.
This course discusses current work on boom-bust cycles in the housing sector and their
effect on the macroeconomy. The emphasis is placed on papers in the macroeconomics
literature that use a model-based quantitative approach. The course mainly focuses on
the developments that took place in U.S. residential housing and mortgage markets during
the last two decades. The papers that will be discussed deal with one of the following
questions. Which determinants caused the housing boom? What are macroeconomic
consequences of the bust? How should housing and mortgage markets be regulated to
prevent such boom-bust cycles in the future. And what type of monetary or fiscal policy
is suited to counter housing market imbalances? When it comes to policy issues, the
international experience is also considered in view of lessons that can be learned.

Lernziel:
After completing the course, successful students

•  are familiar with the recent developments in U.S. housing and mortgage markets
  
•  have attained a survey of the latest research ideas and topics in the macro-housing literature
  
•  are able to read, understand and assess the strengths and weaknesses of high-level research papers, including the abilities to identify scientific contributions and to criticize research ideas and their implementation in an adequate and constructive way
  
•  can present the main economic intuition of a particular paper to laymen and can exchange ideas with experts on a scientific level
  
•  have improved their presentation skills.
  

Vorgehen:
After a few introductory lectures, students present research papers which are discussed
in class. Students are expected to read the papers in advance and to participate actively
in the discussions.

Literatur:
tbd

Zusätzliche Hinweise zu Prüfungen:
The course grade is based on a term paper (42%), a class presentation discussing one
research paper (33%), and active participation in class (25%). Presentations shall contain
a critical assessment of the paper, i.e. discussions on how the paper relates to the
literature, an evaluation of its scientific contribution, and (if possible) some extensions.
Term papers are expected to comprise about 15 pages text (exclusive bibliography and
appendix) and be handed in by the end of lecture period.