Handbook of Real Estate and Macroeconomics

This Handbook collects a set of academic and accessible chapters to address three questions: What should real estate economists know about macroeconomics? What should macroeconomists know about real estate? What should readers know about the interaction between real estate and macroeconomics? Content is focused on four widely discussed themes: real estate-related wealth and macroeconomics, housing price dynamics and affordability, financial crises and structural change, and non-residential real estate. The chapter authors, active researchers from around the world, present evidence from various countries and datasets that are of interest to audiences across the globe, summarize insights from previous research and shed light on current issues. The Handbook of Real Estate and Macroeconomics assists researchers on the big picture as well as a hot spots in frontier research, and facilitates worldwide policy discussions and analysis for practitioners in financial markets, corporate economists, and policy analysts in governments and NGOs.

Table of Contents:
Contents: Introduction to the Handbook of Real Estate and Macroeconomics x Charles Ka Yui Leung PART I REAL ESTATE-RELATED WEALTH AND MACROECONOMICS 1 Real estate market and consumption: macro and micro evidence of Japan 2 Kazuo Ogawa 2 The Bank of Japan as a real estate tycoon: large-scale REIT purchases 21 Takahiro Hattori and Jiro Yoshida 3 Land and macroeconomics 39 Prasad Sankar Bhattacharya PART II HOUSING PRICE DYNAMICS AND AFFORDABILITY 4 Affordable housing conundrum in India 83 Piyush Tiwari and Jyoti Shukla 5 Residential location and education in the United States 106 Eric A. Hanushek and Kuzey Yilmaz 6 Testing for real estate bubbles 137 Eric Girardin and Roselyne Joyeux 7 Disaggregating house price dynamics 165 Rose Neng Lai and Robert A. Van Order 8 The effect of macroeconomic uncertainty on housing returns and volatility: evidence from US state-level data 206 Reneé van Eyden, Rangan Gupta, Christophe André and Xin Sheng PART III FINANCIAL CRISIS AND STRUCTURAL CHANGE 9 Financial crisis and the U.S. mortgage markets – a review 240 Sumit Agarwal and Sandeep Varshneya 10 Is housing still the business cycle? Perhaps not. 269 Richard K. Green 11 International macroeconomic aspect of housing 284 Joe Cho Yiu Ng 12 How did the asset markets change after the Global Financial Crisis? 312 Kuang-Liang Chang and Charles Ka Yui Leung PART IV NON-RESIDENTIAL REAL ESTATE 13 From the regional economy to the macroeconomy 338 Santiago M. Pinto and Pierre-Daniel G. Sarte 14 Industrial parks and urban growth: a political economy story in China 359 Matthew E. Kahn, Jianfeng Wu, Weizeng Sun and Siqi Zheng 15 Pension funds and private equity real estate: history, performance, pathologies, risks 371 Timothy J. Riddiough 16 A mayor’s perspective on tackling air pollution 413 Shihe Fu and V. Brian Viard Index 438

About the Author :
Edited by Charles Ka Yui Leung, Department of Economics and Finance, City University of Hong Kong, Kowloon Tong, Hong Kong

Review :
‘Housing is distinct among goods by virtue of its importance in expenditure and welfare, its durability, and its ability to locate and identify its consumer to others (including the government). As a result, the economics of housing is central to many literatures. These include the role of fluctuations in housing construction and prices in business cycles, housing’s impact on financial markets via its role as a store of value and easily collateralized good, and the treatment of housing as a basis for taxation and distribution of government services, especially government produced education. The papers in this Handbook volume span these topics as well as many others. While providing fresh results and insights, the papers also provide a terrific portal to researchers, especially graduate students, considering working in any of these areas.’ ‘This is an excellent resource for researchers, policymakers, and market practitioners interested in the economics of housing. The Editor, Professor Charles Leung, is a noted figure in the area. He has put together a superb collection of papers covering topics such as the affordability of housing, commercial real estate, and the financial crisis, among other things. The chapters discuss housing in various countries and provide some cross-country comparisons.’ ‘An invaluable resource for those interested in one of the hottest areas in economics, the macroeconomics of real estate and household finance.’ ‘The mid-2000s Great Financial Crisis was a reminder to macroeconomists that models which omitted explicit analysis of the economy’s largest tangible asset, an asset that underpins large parts of the financial system, can miss much of what is happening outside the model, in the actual economy. On the flip side, the GFC reminded housing economists of the need to deepen understanding of spillovers from housing to the macroeconomy and financial markets, and other settings such as labor markets and environmental conditions. The SARS-CoV-2 pandemic has focused economists of every stripe on epidemiology and public health, but housing markets are also once again brought to the fore, as concerns mount about foreclosures, evictions, and distortions in rents and asset prices directly from the pandemic and less directly from the responses to it. Anyone seeking understanding of previous episodes, or looking for insight into the present, or the next crisis, will profit from repeated consultation with this Handbook. The volume gathers a distinguished group of scholars from around the world, and provides a state-of-the-art review of linkages between housing economics and the aggregate economy and its major constituent markets. Individual chapters provide reviews of the latest modeling tools as well as case studies, in a wide range of international settings, at different levels of income and urbanization. Highly recommended.’ ‘This book gathers a great collection of papers on real estate that contains valuable insights for both academics and practitioners.’