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MACROECONOMICS
Investment in housing and residential structures refers to expenditure on
new housing units and on the maintenance and improvement of existing units.
Residential investment spending constitutes a large fraction of total private
investment spending in an economy and a dominant component of savings is
in the form of housing. Our understanding of the determinants of investment
in housing is developed with reference to the market for rental apartments.
The market for owner-occupied housing is similar in nature because the owner
of a house implicitly pays a rental price which has been paid up front at the
time of the ...
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