Rural-Urban Migration, Structural Transformation, and Housing Markets in China
Time：9:00am - 10:30am, Mar. 19th, 2021
(University of Missouri)
Meeting ID：980 9640 9692
This paper investigates the interrelationship between urbanization, structural transformation, and the post-2000 Chinese housing boom through the lens of a newly developed multi-sector heterogeneous agent equilibrium model that features migration and a rich housing market structure with mortgages. Urbanization and structural transformation emerge as key drivers of China's house price boom, while at the same time rising house prices impede these forces of economic transition. Policies to boost urbanization can be undone by the endogenous price response. Land supply expansion ameliorates this negative feedback. Overall, housing acts as a potent source of economic transmission.
Professor Aaron Hedlund is an Associate Professor of Economics (with tenure) at the University of Missouri and a Research Fellow at the Federal Reserve Bank of St. Louis. He was also previously the Chief Domestic Economist and Senior Adviser at the White House Council of Economic Advisers from 2020 to 2021. His research focuses on the intersection of macroeconomics, finance, real estate, and labor. He has published in a variety of journals (including American Economic Review, American Economic Journal: Macroeconomics, Journal of Monetary Economics and Quantitative Economics). Professor Hedlund received his Ph.D. in economics from the University of Pennsylvania in 2012.