Will the housing wealth effect compensate the macro-economy? Evidence from Taiwan’s domestic consumption
Abstract
This paper examines the relationship between the escalation in housing prices and categories of Taiwan’s domestic consumption. While disposable income remains constant, a rapid escalation in housing prices should have a negative impact on unaffordability within society. However, under the hypothesis of the housing wealth effect, an increase in housing values should compensate the macro-economy by increasing consumption in the GDP calculation. Taiwanese data from 2007Q1 to 2018Q1 were adopted as the sample. From the vector error correction model results, it was found that over the course of the long-run equilibrium relationship, there was a statistically significant positive relationship that the society consumes more on durable goods of communication-related nature, as well as on non-durable goods such as personal clothing and accessories and leisure/cultural tourism. As for the short-run dynamic adjustment, there was a statistically significant positive relationship that the society consumes more in the durable goods component categories. It was identified that transportationrelated consumption accounted for the major part of the durable goods component. Therefore, with the rapid escalation in housing prices, it was observed that these consumption would compensate the consumption figures in the GDP calculation in Taiwan, thereby providing evidence that housing prices were related to macroeconomic performance.
Keyword : housing wealth effect, housing prices, GDP, domestic consumption
How to Cite
Cheng, H.-J. ., Wang, N.-Y. ., Peng, C.-W. ., & Huang, C.-J. . (2020). Will the housing wealth effect compensate the macro-economy? Evidence from Taiwan’s domestic consumption. International Journal of Strategic Property Management, 24(3), 197-214. https://doi.org/10.3846/ijspm.2020.12169
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Angrisani, M., Hurd, M., & Rohwedder, S. (2019). The effect of housing wealth losses on spending in the great recession. Economic Inquiry, 57(2), 972−996. https://doi.org/10.1111/ecin.12753
Aoki, K., Proudman, J., & Vlieghe, G. (2002). Houses as collateral: has the link between house prices and consumption in the U.K. changed? Federal Reserve Bank of New York Economic Policy Review, 8(1), 163−178. https://doi.org/10.1016/j.jfi.2004.06.003
Aoki, K., Proudman, J., & Vlieghe, G. (2004). House prices, consumption, and monetary policy: a financial accelerator approach. Journal of Financial Intermediation, 13(4), 414−435.
Attanasio, O. P., Blow, L., Hamilton, R., & Leicester, A. (2009). Boom and busts: consumption, housing prices and expectations. Economica, 29, 341−354. https://doi.org/10.1111/j.1468-0335.2008.00708.x
Attanasio, O., & Weber, G. (1994). The UK consumption boom of the late 1980s: aggregate implications of microeconomic evidence. Economic Journal, 104, 1269−1302. https://doi.org/10.2307/2235449
Benito, A. (2009). Who withdraws housing equity and why? Economica, 76, 51–70. https://doi.org/10.1111/j.1468-0335.2008.00693.x
Bourassa, S. C., & Peng, C. W. (2011). Why was Taiwan’s homeownership rate so high? Urban Studies, 48(13), 2887−2904. https://doi.org/10.1177/0042098010391298
Buiter, W. (2007). Lessons from the North Atlantic financial crisis (No. 18, pp. 1−17). Center for Economic Policy Research.
Calomiris, C. W., Longhofer, S. D., & Miles, W. (2013). The housing wealth effect: the crucial roles of demographics, wealth distribution and wealth shares. Critical Finance Review, 2(1), 49−99. https://doi.org/10.1561/104.00000008
Campbell, J. Y., & Cocco, J. (2007). How do house prices affect consumption? Journal of Monetary Economics, 54, 591−621. https://doi.org/10.1016/j.jmoneco.2005.10.016
Campbell, J., & Mankiw, G. (1990). Permanent income, current income, and consumption. Journal of Business & Economic Statistics, 8(3), 265−279. https://doi.org/10.1080/07350015.1990.10509798
Canner, G., Dynan, K., & Passmore, W. (2002). Mortgage refinancing in 2001 and early 2002. Federal Reserve Bulletin, 88, 469−481.
Carroll, C., Otsuka, M., & Slacalek, J. (2011). How large is the housing wealth effect? A new approach. Journal of Money, Credit and Banking, 43, 55−79. https://doi.org/10.1111/j.1538-4616.2010.00365.x
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Chen, J., Hardin III, W., & Hu, M. (2018). Housing, wealth, income and consumption: China and homeownership heterogeneity. Real Estate Economics (forthcoming). https://doi.org/10.1111/1540-6229.12245
Chen, N. K., Chen, S. S., & Chou, Y. H. (2010). House prices, collateral constraint and the asymmetric effect on consumption. Journal of Housing Economics, 19(1), 26−37. https://doi.org/10.1016/j.jhe.2009.10.003
Chen, N. K., & Wang, H. J. (2011). The effect of changes in asset prices on private consumption. Quarterly Bulletin, Central Bank of Taiwan, 33(1), 7−40.
Chen, Y. L. (2015). The factors and implications of rising housing prices in Taiwan. In Taiwan-U.S. Quarterly Analysis (No. 18). The Brookings Institution.
Chen, Y. L. (2011). New prospects for social rental housing in Taiwan: the role of housing affordability crises and the housing movement. International Journal of Housing Policy, 11(3), 305−318. https://doi.org/10.1080/14616718.2011.599133
Chuang, M. H. (2017, July 29). Resolving the unimaginable norm of three-highs in the housing market in Taiwan for Shiller (UDN News report). https://money.udn.com/money/story/5634/2611189
Cooper, D., & Dynan, K. (2016). Wealth effects and macroeconomic dynamics. Journal of Economic Surveys, 30(1), 34−55. https://doi.org/10.1111/joes.12090
Dietz, R., & Haurin, D. (2003). The social and private micro-level consequences of homeownership. Journal of Urban Economics, 45, 354−384. https://doi.org/10.1016/S0094-1190(03)00080-9
Disney, R., Henley, A., & Stears, G. (2002). Housing costs, house prices shocks and savings behavior among older households in Britain. Regional Science and Urban Economics, 32, 607−625. https://doi.org/10.1016/S0166-0462(01)00086-2
Dvornak, N., & Kohler, M. (2007). Housing wealth, stock market wealth and consumption: a panel data analysis for Australia. Economic Record, 83(261), 117−130. https://doi.org/10.1111/j.1475-4932.2007.00388.x
Ebner, A. (2010). A micro view on home equity withdrawal and its determinants. Evidence from Dutch households. Journal of Housing Economics, 22(4), 321−337. https://doi.org/10.1016/j.jhe.2013.10.001
Elbourne, A. (2008). The UK housing market and the monetary policy transmission mechanism: an SVAR approach. Journal of Housing Economics, 17(1), 65−87. https://doi.org/10.1016/j.jhe.2007.09.002
Engle, R. F., & Granger, C. W. J. (1987). Cointegration and errorcorrection: representation, estimation and testing. Econometrica, 55(2), 251−276. https://doi.org/10.2307/1913236
Fereidouni, H. G., & Tajaddini, R. (2017). Housing wealth, financial wealth and consumption expenditure: the role of consumer confidence. Journal of Real Estate Finance and Economics, 54(2), 216−236. https://doi.org/10.1007/s11146-015-9537-9
Friedman, M. (1957). A theory of the consumption function. Princeton University Press. https://doi.org/10.1515/9780691188485
Fuhrer, J. C. (1992, September). Do consumers behave as the lifecycle/permanent-income theory of consumption predicts? New England Economic Review, 3−14.
Gan, J. (2010). Housing wealth and consumption growth: Evidence from a large panel of households. The Review of Financial Studies, 23(6), 2229−2267. https://doi.org/10.1093/rfs/hhp127
Hall, R. E. (1978). Stochastic implications of the life cycle-permanent income hypothesis: theory and evidence. Journal of Political Economy, 86(6), 971−987. https://doi.org/10.1086/260724
Holly, S., & Jones, N. (1997). House prices since the 1940s: cointegration, demography and asymmetries. Economic Modelling, 14(4), 549−565. https://doi.org/10.1016/S0264-9993(97)00009-6
Hsueh, L. M. (2000). The relationship between housing price, tenure choice and saving behavior in Taiwan. International Real Estate Review, 3(1), 11−33.
Iacoviello, M. (2004). Consumption, house prices and collateral constraints: a structural economic analysis. Journal of Housing Economics, 13(4), 305−321. https://doi.org/10.1016/j.jhe.2004.09.004
Iacoviello, M. (2005). House prices, borrowing constraints and monetary policy in the business cycle. American Economic Review, 95(3), 739−764. https://doi.org/10.1257/0002828054201477
Iacoviello, M., & Neri, S. (2010). Housing market spillovers: evidence from an estimated DSGE model. American Economic Journal: Macroeconomics, 2, 125−164. https://doi.org/10.1257/mac.2.2.125
Jarque, C., & Bera, A. (1987). A test for normality of observations and regression residuals. International Statistical Review, 55, 163−172. https://doi.org/10.2307/1403192
Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control, 12, 231−254. https://doi.org/10.1016/0165-1889(88)90041-3
Johansen, S. (1991). Estimation and hypothesis testing of cointegration vectors in Gaussian vector autoregressive models. Econometrica, 59(6), 1551−1580. https://doi.org/10.2307/2938278
Johansen, S., & Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration with application to the demand for money. Journal of Econometrics, 53, 211−244. https://doi.org/10.1111/j.1468-0084.1990.mp52002003.x
Kishor, N. K. (2007). Does consumption respond more to housing wealth than to financial market wealth? If so, why? Journal of Real Estate Finance and Economics, 35(4), 427−448. https://doi.org/10.1007/s11146-007-9080-4
Lin, T. C., Hsu, S. H., & Lin, Y. L. S. (2019). The effect of housing prices on consumption and economic growth – the case of Taiwan. Journal of the Asia Pacific Economy, 24(2), 292−312. https://doi.org/10.1080/13547860.2019.1584958
Ludvigson, S., & Steindel, C. (1999). How important is the stock market effect on consumption? Economic Policy Review, 5(2), 29−52.
MacKinnon, J. G., Haug, A. A., & Michelis, L. (1999). Numerical distribution functions of likelihood ratio tests for cointegration. Journal of Applied Econometrics, 14, 563−577. https://doi.org/10.1002/(SICI)1099-1255(199909/10)14:5<563::AID-JAE530>3.0.CO;2-R
Miles, D. (1992). Housing markets, consumption and financial liberalisation in the major economies. European Economic Review, 36(5), 1093−1127. https://doi.org/10.1016/0014-2921(92)90048-2
Modigliani, F., & Brumberg, R. H. (1954). Utility analysis and the consumption function: an interpretation of cross-section data. In K. K. Kurihara (Ed.), Post Keynesian economics (pp. 388−436). Rutgers University Press, New Brunswick.
Monacelli, T. (2009). New Keynesian models, durable goods and collateral constraints. Journal of Monetary Economics, 56(2), 242−254. https://doi.org/10.1016/j.jmoneco.2008.09.013
Muellbauer, J., & Murphy, A. (2008). Housing markets and the economy: the assessment. Oxford Review of Economic Policy, 24(1), 1−33. https://doi.org/10.1093/oxrep/grn011
Paiella, M., & Pistaferri, L. (2017). Decomposing the wealth effect on consumption. The Review of Economics and Statistics, 99(4), 710−721. https://doi.org/10.1162/REST_a_00629
Palumbo, M., Rudd, J., & Whelan, K. (2006). On the relationships between real consumption, income, and wealth. Journal of Business and Economic Statistics, 24, 1−11. https://doi.org/10.1198/073500105000000225
Peltonen, T. A., Sousa, R. M., & Vansteenkiste, I. (2012). Wealth effects in emerging market economies. International Review of Economics and Finance, 24, 155−166. https://doi.org/10.1016/j.iref.2012.01.006
Poterba, J. M. (2000). Stock market wealth and consumption. Journal of Economic Perspectives, 14(2), 99−118. https://doi.org/10.1257/jep.14.2.99
Rohe, W., & Stegman, M. (1994). The impact of homeownership on social and political involvement of low-income people. Urban Affairs Quarterly, 30, 152−172. https://doi.org/10.1177/004208169403000108
Simo-Kengne, B., Gupta, R., & Bittencourt, M. (2013). The impact of house prices on consumption in South Africa: evidence from provincial-level panel VARs. Housing Studies, 28(8), 1133−1154. https://doi.org/10.1080/02673037.2013.804492
Sims, C. A. (1980). Macroeconomics and reality. Econometrica, 48, 1−48. https://doi.org/10.2307/1912017
Sinai, T., & Souleles, N. (2005). Owner-occupied housing as a hedge against risk. Quarterly Journal of Economics, 120, 763−789. https://doi.org/10.1093/qje/120.2.763
Yang, Z., Fan, Y., & Zhao, L. (2018). A reexamination of housing price and household consumption in China: the dual role of housing consumption and housing investment. Journal of Real Estate Finance and Economics, 56(3), 472−499. https://doi.org/10.1007/s11146-017-9648-6
Angrisani, M., Hurd, M., & Rohwedder, S. (2019). The effect of housing wealth losses on spending in the great recession. Economic Inquiry, 57(2), 972−996. https://doi.org/10.1111/ecin.12753
Aoki, K., Proudman, J., & Vlieghe, G. (2002). Houses as collateral: has the link between house prices and consumption in the U.K. changed? Federal Reserve Bank of New York Economic Policy Review, 8(1), 163−178. https://doi.org/10.1016/j.jfi.2004.06.003
Aoki, K., Proudman, J., & Vlieghe, G. (2004). House prices, consumption, and monetary policy: a financial accelerator approach. Journal of Financial Intermediation, 13(4), 414−435.
Attanasio, O. P., Blow, L., Hamilton, R., & Leicester, A. (2009). Boom and busts: consumption, housing prices and expectations. Economica, 29, 341−354. https://doi.org/10.1111/j.1468-0335.2008.00708.x
Attanasio, O., & Weber, G. (1994). The UK consumption boom of the late 1980s: aggregate implications of microeconomic evidence. Economic Journal, 104, 1269−1302. https://doi.org/10.2307/2235449
Benito, A. (2009). Who withdraws housing equity and why? Economica, 76, 51–70. https://doi.org/10.1111/j.1468-0335.2008.00693.x
Bourassa, S. C., & Peng, C. W. (2011). Why was Taiwan’s homeownership rate so high? Urban Studies, 48(13), 2887−2904. https://doi.org/10.1177/0042098010391298
Buiter, W. (2007). Lessons from the North Atlantic financial crisis (No. 18, pp. 1−17). Center for Economic Policy Research.
Calomiris, C. W., Longhofer, S. D., & Miles, W. (2013). The housing wealth effect: the crucial roles of demographics, wealth distribution and wealth shares. Critical Finance Review, 2(1), 49−99. https://doi.org/10.1561/104.00000008
Campbell, J. Y., & Cocco, J. (2007). How do house prices affect consumption? Journal of Monetary Economics, 54, 591−621. https://doi.org/10.1016/j.jmoneco.2005.10.016
Campbell, J., & Mankiw, G. (1990). Permanent income, current income, and consumption. Journal of Business & Economic Statistics, 8(3), 265−279. https://doi.org/10.1080/07350015.1990.10509798
Canner, G., Dynan, K., & Passmore, W. (2002). Mortgage refinancing in 2001 and early 2002. Federal Reserve Bulletin, 88, 469−481.
Carroll, C., Otsuka, M., & Slacalek, J. (2011). How large is the housing wealth effect? A new approach. Journal of Money, Credit and Banking, 43, 55−79. https://doi.org/10.1111/j.1538-4616.2010.00365.x
Case, K., Shiller, R., & Quigley, J. (2005). Comparing wealth effects: the stock market versus the housing market. Advances in Macroeconomics, 5, 1−32. https://doi.org/10.2202/1534-6013.1235
Chen, J., Guo, F., & Zhu, A. (2009). Housing wealth, financial wealth and consumption in China. China & World Economy, 17(3), 57−74. https://doi.org/10.1111/j.1749-124X.2009.01150.x
Chen, J., Hardin III, W., & Hu, M. (2018). Housing, wealth, income and consumption: China and homeownership heterogeneity. Real Estate Economics (forthcoming). https://doi.org/10.1111/1540-6229.12245
Chen, N. K., Chen, S. S., & Chou, Y. H. (2010). House prices, collateral constraint and the asymmetric effect on consumption. Journal of Housing Economics, 19(1), 26−37. https://doi.org/10.1016/j.jhe.2009.10.003
Chen, N. K., & Wang, H. J. (2011). The effect of changes in asset prices on private consumption. Quarterly Bulletin, Central Bank of Taiwan, 33(1), 7−40.
Chen, Y. L. (2015). The factors and implications of rising housing prices in Taiwan. In Taiwan-U.S. Quarterly Analysis (No. 18). The Brookings Institution.
Chen, Y. L. (2011). New prospects for social rental housing in Taiwan: the role of housing affordability crises and the housing movement. International Journal of Housing Policy, 11(3), 305−318. https://doi.org/10.1080/14616718.2011.599133
Chuang, M. H. (2017, July 29). Resolving the unimaginable norm of three-highs in the housing market in Taiwan for Shiller (UDN News report). https://money.udn.com/money/story/5634/2611189
Cooper, D., & Dynan, K. (2016). Wealth effects and macroeconomic dynamics. Journal of Economic Surveys, 30(1), 34−55. https://doi.org/10.1111/joes.12090
Dietz, R., & Haurin, D. (2003). The social and private micro-level consequences of homeownership. Journal of Urban Economics, 45, 354−384. https://doi.org/10.1016/S0094-1190(03)00080-9
Disney, R., Henley, A., & Stears, G. (2002). Housing costs, house prices shocks and savings behavior among older households in Britain. Regional Science and Urban Economics, 32, 607−625. https://doi.org/10.1016/S0166-0462(01)00086-2
Dvornak, N., & Kohler, M. (2007). Housing wealth, stock market wealth and consumption: a panel data analysis for Australia. Economic Record, 83(261), 117−130. https://doi.org/10.1111/j.1475-4932.2007.00388.x
Ebner, A. (2010). A micro view on home equity withdrawal and its determinants. Evidence from Dutch households. Journal of Housing Economics, 22(4), 321−337. https://doi.org/10.1016/j.jhe.2013.10.001
Elbourne, A. (2008). The UK housing market and the monetary policy transmission mechanism: an SVAR approach. Journal of Housing Economics, 17(1), 65−87. https://doi.org/10.1016/j.jhe.2007.09.002
Engle, R. F., & Granger, C. W. J. (1987). Cointegration and errorcorrection: representation, estimation and testing. Econometrica, 55(2), 251−276. https://doi.org/10.2307/1913236
Fereidouni, H. G., & Tajaddini, R. (2017). Housing wealth, financial wealth and consumption expenditure: the role of consumer confidence. Journal of Real Estate Finance and Economics, 54(2), 216−236. https://doi.org/10.1007/s11146-015-9537-9
Friedman, M. (1957). A theory of the consumption function. Princeton University Press. https://doi.org/10.1515/9780691188485
Fuhrer, J. C. (1992, September). Do consumers behave as the lifecycle/permanent-income theory of consumption predicts? New England Economic Review, 3−14.
Gan, J. (2010). Housing wealth and consumption growth: Evidence from a large panel of households. The Review of Financial Studies, 23(6), 2229−2267. https://doi.org/10.1093/rfs/hhp127
Hall, R. E. (1978). Stochastic implications of the life cycle-permanent income hypothesis: theory and evidence. Journal of Political Economy, 86(6), 971−987. https://doi.org/10.1086/260724
Holly, S., & Jones, N. (1997). House prices since the 1940s: cointegration, demography and asymmetries. Economic Modelling, 14(4), 549−565. https://doi.org/10.1016/S0264-9993(97)00009-6
Hsueh, L. M. (2000). The relationship between housing price, tenure choice and saving behavior in Taiwan. International Real Estate Review, 3(1), 11−33.
Iacoviello, M. (2004). Consumption, house prices and collateral constraints: a structural economic analysis. Journal of Housing Economics, 13(4), 305−321. https://doi.org/10.1016/j.jhe.2004.09.004
Iacoviello, M. (2005). House prices, borrowing constraints and monetary policy in the business cycle. American Economic Review, 95(3), 739−764. https://doi.org/10.1257/0002828054201477
Iacoviello, M., & Neri, S. (2010). Housing market spillovers: evidence from an estimated DSGE model. American Economic Journal: Macroeconomics, 2, 125−164. https://doi.org/10.1257/mac.2.2.125
Jarque, C., & Bera, A. (1987). A test for normality of observations and regression residuals. International Statistical Review, 55, 163−172. https://doi.org/10.2307/1403192
Johansen, S. (1988). Statistical analysis of cointegration vectors. Journal of Economic Dynamics and Control, 12, 231−254. https://doi.org/10.1016/0165-1889(88)90041-3
Johansen, S. (1991). Estimation and hypothesis testing of cointegration vectors in Gaussian vector autoregressive models. Econometrica, 59(6), 1551−1580. https://doi.org/10.2307/2938278
Johansen, S., & Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration with application to the demand for money. Journal of Econometrics, 53, 211−244. https://doi.org/10.1111/j.1468-0084.1990.mp52002003.x
Kishor, N. K. (2007). Does consumption respond more to housing wealth than to financial market wealth? If so, why? Journal of Real Estate Finance and Economics, 35(4), 427−448. https://doi.org/10.1007/s11146-007-9080-4
Lin, T. C., Hsu, S. H., & Lin, Y. L. S. (2019). The effect of housing prices on consumption and economic growth – the case of Taiwan. Journal of the Asia Pacific Economy, 24(2), 292−312. https://doi.org/10.1080/13547860.2019.1584958
Ludvigson, S., & Steindel, C. (1999). How important is the stock market effect on consumption? Economic Policy Review, 5(2), 29−52.
MacKinnon, J. G., Haug, A. A., & Michelis, L. (1999). Numerical distribution functions of likelihood ratio tests for cointegration. Journal of Applied Econometrics, 14, 563−577. https://doi.org/10.1002/(SICI)1099-1255(199909/10)14:5<563::AID-JAE530>3.0.CO;2-R
Miles, D. (1992). Housing markets, consumption and financial liberalisation in the major economies. European Economic Review, 36(5), 1093−1127. https://doi.org/10.1016/0014-2921(92)90048-2
Modigliani, F., & Brumberg, R. H. (1954). Utility analysis and the consumption function: an interpretation of cross-section data. In K. K. Kurihara (Ed.), Post Keynesian economics (pp. 388−436). Rutgers University Press, New Brunswick.
Monacelli, T. (2009). New Keynesian models, durable goods and collateral constraints. Journal of Monetary Economics, 56(2), 242−254. https://doi.org/10.1016/j.jmoneco.2008.09.013
Muellbauer, J., & Murphy, A. (2008). Housing markets and the economy: the assessment. Oxford Review of Economic Policy, 24(1), 1−33. https://doi.org/10.1093/oxrep/grn011
Paiella, M., & Pistaferri, L. (2017). Decomposing the wealth effect on consumption. The Review of Economics and Statistics, 99(4), 710−721. https://doi.org/10.1162/REST_a_00629
Palumbo, M., Rudd, J., & Whelan, K. (2006). On the relationships between real consumption, income, and wealth. Journal of Business and Economic Statistics, 24, 1−11. https://doi.org/10.1198/073500105000000225
Peltonen, T. A., Sousa, R. M., & Vansteenkiste, I. (2012). Wealth effects in emerging market economies. International Review of Economics and Finance, 24, 155−166. https://doi.org/10.1016/j.iref.2012.01.006
Poterba, J. M. (2000). Stock market wealth and consumption. Journal of Economic Perspectives, 14(2), 99−118. https://doi.org/10.1257/jep.14.2.99
Rohe, W., & Stegman, M. (1994). The impact of homeownership on social and political involvement of low-income people. Urban Affairs Quarterly, 30, 152−172. https://doi.org/10.1177/004208169403000108
Simo-Kengne, B., Gupta, R., & Bittencourt, M. (2013). The impact of house prices on consumption in South Africa: evidence from provincial-level panel VARs. Housing Studies, 28(8), 1133−1154. https://doi.org/10.1080/02673037.2013.804492
Sims, C. A. (1980). Macroeconomics and reality. Econometrica, 48, 1−48. https://doi.org/10.2307/1912017
Sinai, T., & Souleles, N. (2005). Owner-occupied housing as a hedge against risk. Quarterly Journal of Economics, 120, 763−789. https://doi.org/10.1093/qje/120.2.763
Yang, Z., Fan, Y., & Zhao, L. (2018). A reexamination of housing price and household consumption in China: the dual role of housing consumption and housing investment. Journal of Real Estate Finance and Economics, 56(3), 472−499. https://doi.org/10.1007/s11146-017-9648-6