Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/110367 
Year of Publication: 
2015
Series/Report no.: 
BERG Working Paper Series No. 99
Publisher: 
Bamberg University, Bamberg Economic Research Group (BERG), Bamberg
Abstract: 
We combine a standard stock-flow housing market model, incorporating explicit relationships between house prices, the housing stock, and the rent level, with a parsimonious expectation formation scheme of housing market investors, reflecting an evolving mix of extrapolative and regressive expectation rules. The model results in a two-dimensional discrete-time nonlinear dynamical system. Based on realistic parameters, the model is able to generate endogenous boom-bust housing market dynamics with lasting periods of overvaluation and overbuilding. We thus exploit our model to investigate how real forces, in particular supply conditions, interact with expectations-driven housing market fluctuations.
Subjects: 
Housing markets
Speculation
Housing supply
Boom-bust cycles
Nonlinear dynamics
JEL: 
D84
R21
R31
ISBN: 
978-3-943153-16-3
Document Type: 
Working Paper

Files in This Item:
File
Size
502.12 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.