An Extrapolative Model of House Price Dynamics

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Edward L. Glaeser; Charles G. Nathanson;
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    • jel: jel:R21 | jel:D03 | jel:G02

A modest approximation by homebuyers leads house prices to display three features that are present in the data but usually missing from perfectly rational models: momentum at one-year horizons, mean reversion at five-year horizons, and excess longer-term volatility rela... View more
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