This paper studies stochastic hysteresis− general dependence on the path of past decisions and shocks. We develop a new methodology for deriving the explicit dynamics of optimal …
We explore the transmission channels of macroprudential policy in the form of caps on household mortgage borrowing. We employ an overlapping generations model with …
This paper quantifies welfare gains from Pareto reforms in an overlapping generations framework with policies constrained due to private information about shocks to household …
Most high-income economies have adopted a large number of housing policies. Governments levy property taxes, subsidize rents, exempt imputed rents from asset income …