Rational housing demand bubble

We provide a unified framework with demand for housing over the life cycle and financial frictions to analyze the existence and macroeconomic effects of rational housing bubbles. We distinguish a housing price bubble, defined as the difference between the housing market price and its fundamental val...

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Detalles Bibliográficos
Autores: Clain-Chamosset-Yvrard, Lise, Raurich, Xavier, Seegmuller, Thomas
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2024
País:España
Institución:Universidad de Barcelona
Repositorio:Dipòsit Digital de la UB
OAI Identifier:oai:diposit.ub.edu:2445/209243
Acceso en línea:https://hdl.handle.net/2445/209243
Access Level:acceso abierto
Palabra clave:Bombolla immobiliària
Especulació
Control de preus
Real estate bubble
Speculation
Price control
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spelling Rational housing demand bubbleClain-Chamosset-Yvrard, LiseRaurich, XavierSeegmuller, ThomasBombolla immobiliàriaEspeculacióControl de preusReal estate bubbleSpeculationPrice controlWe provide a unified framework with demand for housing over the life cycle and financial frictions to analyze the existence and macroeconomic effects of rational housing bubbles. We distinguish a housing price bubble, defined as the difference between the housing market price and its fundamental value, from a housing demand bubble, which corresponds to a situation where a pure speculative housing demand exists. In an overlapping generation exchange economy, we show that no housing price bubble occurs. However, a housing demand bubble may occur, generating a boom in housing prices and a drop in the interest rate, when households face a binding borrowing constraint. The multiplicity of steady states and endogenous fluctuations can occur when credit market imperfections are moderate. These fluctuations involve transitions between equilibria with and without a housing demand bubble that generate large fluctuations in housing prices consistent with observed patterns. We finally extend the basic framework to a production economy and we show that a housing demand bubble increases housing prices, which can still be characterized by large fluctuations.Springer Verlag2024info:eu-repo/semantics/articleinfo:eu-repo/semantics/acceptedVersionapplication/pdfhttps://hdl.handle.net/2445/209243Articles publicats en revistes (Economia)reponame:Dipòsit Digital de la UBinstname:Universidad de BarcelonaInglésVersió postprint del document publicat a: https://link.springer.com/article/10.1007/s00199-023-01501-4Economic Theory, 2024, vol. 77, p. 699–746https://doi.org/10.1007/s00199-023-01501-4(c) Springer Verlag, 2024info:eu-repo/semantics/openAccessoai:diposit.ub.edu:2445/2092432026-05-27T06:46:51Z
dc.title.none.fl_str_mv Rational housing demand bubble
title Rational housing demand bubble
spellingShingle Rational housing demand bubble
Clain-Chamosset-Yvrard, Lise
Bombolla immobiliària
Especulació
Control de preus
Real estate bubble
Speculation
Price control
title_short Rational housing demand bubble
title_full Rational housing demand bubble
title_fullStr Rational housing demand bubble
title_full_unstemmed Rational housing demand bubble
title_sort Rational housing demand bubble
dc.creator.none.fl_str_mv Clain-Chamosset-Yvrard, Lise
Raurich, Xavier
Seegmuller, Thomas
author Clain-Chamosset-Yvrard, Lise
author_facet Clain-Chamosset-Yvrard, Lise
Raurich, Xavier
Seegmuller, Thomas
author_role author
author2 Raurich, Xavier
Seegmuller, Thomas
author2_role author
author
dc.subject.none.fl_str_mv Bombolla immobiliària
Especulació
Control de preus
Real estate bubble
Speculation
Price control
topic Bombolla immobiliària
Especulació
Control de preus
Real estate bubble
Speculation
Price control
description We provide a unified framework with demand for housing over the life cycle and financial frictions to analyze the existence and macroeconomic effects of rational housing bubbles. We distinguish a housing price bubble, defined as the difference between the housing market price and its fundamental value, from a housing demand bubble, which corresponds to a situation where a pure speculative housing demand exists. In an overlapping generation exchange economy, we show that no housing price bubble occurs. However, a housing demand bubble may occur, generating a boom in housing prices and a drop in the interest rate, when households face a binding borrowing constraint. The multiplicity of steady states and endogenous fluctuations can occur when credit market imperfections are moderate. These fluctuations involve transitions between equilibria with and without a housing demand bubble that generate large fluctuations in housing prices consistent with observed patterns. We finally extend the basic framework to a production economy and we show that a housing demand bubble increases housing prices, which can still be characterized by large fluctuations.
publishDate 2024
dc.date.none.fl_str_mv 2024
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/acceptedVersion
format article
status_str acceptedVersion
dc.identifier.none.fl_str_mv https://hdl.handle.net/2445/209243
url https://hdl.handle.net/2445/209243
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Versió postprint del document publicat a: https://link.springer.com/article/10.1007/s00199-023-01501-4
Economic Theory, 2024, vol. 77, p. 699–746
https://doi.org/10.1007/s00199-023-01501-4
dc.rights.none.fl_str_mv (c) Springer Verlag, 2024
info:eu-repo/semantics/openAccess
rights_invalid_str_mv (c) Springer Verlag, 2024
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Springer Verlag
publisher.none.fl_str_mv Springer Verlag
dc.source.none.fl_str_mv Articles publicats en revistes (Economia)
reponame:Dipòsit Digital de la UB
instname:Universidad de Barcelona
instname_str Universidad de Barcelona
reponame_str Dipòsit Digital de la UB
collection Dipòsit Digital de la UB
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15.300724

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