Real Estate, the External Finance Premium and Business Investment: A Quantitative Dynamic General Equilibrium Analysis
研究房地产市场与资本市场的关系，发现房价上涨会降低外部融资溢价并刺激非住宅投资和GDP，理论模型能模拟相关变量的波动和周期性。
This article studies the connection between the capital market and the real estate market. Empirically, we find that positive real house price shocks lower the external finance premium and stimulate nonresidential investment and real gross domestic product (GDP). Our theoretical framework is able to mimic the volatility of the external finance premium, the relative price of real estate and capital and the investment in real estate and capital. It also captures the cyclicality of the external finance premium and of real estate prices. The contribution of real estate price fluctuations to the variability of the external finance premium and the GDP is confirmed to be significant.