Ross Halren asked about the role of expectations in an overlapping generations (OLG) model. Do consumers have forward-looking expectations about housing prices? Is housing a consumption good or a future good?
Mary-Francoise Renard asked about the role of precautionary savings such as savings for pension, health expenditures, and so on, in the model.
Bhanupong Nidhiprabha noted the following: (1) In rural areas, the household budget allocated to consumption is high, which is why the interest rate in the model is not significant. Liquidity constraints matter, too. (2) Do the Chinese have any inflation hedges that may also be a source of wealth accumulation? (3) What is the role of people who work in cities? Do they remit money back to the rural areas, which may then affect savings in rural areas? (4) Even if agricultural farm prices are high, farmers remain credit-constrained because they are unable to access credit from...