A simple model of a speculative housing market

Research, Preprint, Article English OPEN
Dieci, Roberto; Westerhoff, Frank;
  • Publisher: Bamberg: Bamberg University, Bamberg Economic Research Group on Government and Growth (BERG)
  • Related identifiers: doi: 10.1007/s00191-011-0259-8
  • Subject: SPECULATION | G12 | G15 | G14 | Bodenspekulation | Housing markets,Speculation,Boom and bust cycles,Nonlinear Dynamics | BOOM-BUST CYCLES | Boom and bust cycles | Volatilität | Immobilienpreis | HOUSING MARKETS | Zeitpräferenz | NONLINEAR DYNAMICS | Wohnungsmarkt | Theorie
    • jel: jel:G12 | jel:G15 | jel:G14
      ddc: ddc:330

We develop a simple model of a speculative housing market in which the demand for houses is influenced by expectations about future housing prices. Guided by empirical evidence, agents rely on extrapolative and regressive forecasting rules to form their expectations. Th... View more