Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/179673 
Year of Publication: 
2018
Series/Report no.: 
BERG Working Paper Series No. 135
Publisher: 
Bamberg University, Bamberg Economic Research Group (BERG), Bamberg
Abstract: 
Since the instability of housing markets may be quite harmful for the real economy, we explore whether public housing construction programs may tame housing market fluctuations. As a workhorse, we use a behavioral stock-flow housing market model in which the complex interplay between speculative and real forces triggers realistic housing market dynamics. Simulations reveal that plausible and well-intended policy measures may turn out to be a mixed blessing. While public housing construction programs may reduce house prices, they seem to be incapable of bringing house prices much closer towards their fundamental values. In addition, these programs tend to drive out private housing constructions.
Subjects: 
housing markets
boom-bust dynamics
extrapolative and regressive expectations
heterogeneous agent model
policy experiments
public housing construction programs
JEL: 
D84
R21
R31
ISBN: 
978-3-943153-56-9
Document Type: 
Working Paper

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