Frank Elderson: Interview with De Volkskrant
While existing models have added a financial sector and real estate sector, they have largely overlooked housing supply.
- While existing models have added a financial sector and real estate sector, they have largely overlooked housing supply.
- I develop an extended DSGE model that includes both the financial sector and endogenous housing supply and show that forecasting accuracy significantly improves when data on new houses is included.
- The findings highlight the necessity of combining model extension and housing supply data for accurate forecasting during economic crises.