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You searched for +publisher:"University of New South Wales" +contributor:("Cho, Sang-Wook, Economics, Australian School of Business, UNSW"). One record found.

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University of New South Wales

1. Petursdottir, Asgerdur. Indivisibility and Housing Market Frictions in a Monetary Framework.

Degree: Economics, 2015, University of New South Wales

This thesis analyses the effect of housing market frictions on real house prices. It also studies the implications for monetary equilibrium of having indivisible goods, such as housing, traded with divisible money. I study the effects of trading frictions, such as access to the housing market and how quickly houses sell, on real house prices. Furthermore, I study the effect credit conditions, access to credit, and thus how different levels of credit frictions affect real house prices. I develop a theoretical framework that is a novel extension of the Lagos and Wright monetary framework. My framework captures explicitly the trade and credit frictions faced by housing market participants.I model housing as an indivisible good. However, using divisible money to trade indivisible goods, and its implication for monetary equilibrium, has not been studied in detail by the literature. With indivisible goods, adjustments cannot take place through the intensive margin. I find that Nash bargaining is unsuitable to study the link between monetary variables and indivisible goods. However, due to its endogenously determined surplus from trade, price posting with directed search is ideal to study monetary equilibrium for indivisible goods. I find that the level of trading frictions has a direct effect on real house prices. Easing of trading frictions, results in a more liquid housing market and pushes up real house prices, whereas tightening of frictions reduces prices. The results indicate that real house prices will move further than what seems warranted by standard fundamental values. The intuition is that the frictional nature of the housing market exacerbates real house price movements.I also find that easing of credit frictions pushes up real house prices. An increase in the LTV ratio, and easing of lending standards will cause real house prices to rise. I find that the LTV ratio is the main driver of house prices, and has a greater effect on house prices than changes to the borrowing rate.My research emphasises the importance of closely monitoring the LTV ratio available to house-buyers, as well as modelling the housing market as a frictional market. Advisors/Committee Members: Julien, Benoit, Economics, Australian School of Business, UNSW, Cho, Sang-Wook, Economics, Australian School of Business, UNSW.

Subjects/Keywords: Indivisibility; Credit Conditions; Housing Market Frictions

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APA · Chicago · MLA · Vancouver · CSE | Export to Zotero / EndNote / Reference Manager

APA (6th Edition):

Petursdottir, A. (2015). Indivisibility and Housing Market Frictions in a Monetary Framework. (Doctoral Dissertation). University of New South Wales. Retrieved from http://handle.unsw.edu.au/1959.4/55092 ; https://unsworks.unsw.edu.au/fapi/datastream/unsworks:36520/SOURCE02?view=true

Chicago Manual of Style (16th Edition):

Petursdottir, Asgerdur. “Indivisibility and Housing Market Frictions in a Monetary Framework.” 2015. Doctoral Dissertation, University of New South Wales. Accessed October 16, 2019. http://handle.unsw.edu.au/1959.4/55092 ; https://unsworks.unsw.edu.au/fapi/datastream/unsworks:36520/SOURCE02?view=true.

MLA Handbook (7th Edition):

Petursdottir, Asgerdur. “Indivisibility and Housing Market Frictions in a Monetary Framework.” 2015. Web. 16 Oct 2019.

Vancouver:

Petursdottir A. Indivisibility and Housing Market Frictions in a Monetary Framework. [Internet] [Doctoral dissertation]. University of New South Wales; 2015. [cited 2019 Oct 16]. Available from: http://handle.unsw.edu.au/1959.4/55092 ; https://unsworks.unsw.edu.au/fapi/datastream/unsworks:36520/SOURCE02?view=true.

Council of Science Editors:

Petursdottir A. Indivisibility and Housing Market Frictions in a Monetary Framework. [Doctoral Dissertation]. University of New South Wales; 2015. Available from: http://handle.unsw.edu.au/1959.4/55092 ; https://unsworks.unsw.edu.au/fapi/datastream/unsworks:36520/SOURCE02?view=true

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