Booms and busts in a housing market with heterogeneous agents
We develop a dynamic partial equilibrium model of the housing market, where the dynamics of the house price is determined by the interaction between chartists and fundamentalists. The model endogenously generates episodes of boom and bust in the house price and can replicate the recent US house pric...
| Main Authors: | , , |
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| Format: | Journal article |
| Published: |
Cambridge University Press
2016
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| Summary: | We develop a dynamic partial equilibrium model of the housing market, where the dynamics of the house price is determined by the interaction between chartists and fundamentalists. The model endogenously generates episodes of boom and bust in the house price and can replicate the recent US house price dynamics, and points to endogenous and exogenous behavioral factors as the main determinants of such dynamics. |
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