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Understanding Booms and Busts in Housing Markets

Bibliographic Data

ID10183262
AuthorsCraig Burnside (0000-0001-9843-6053, University of Glasgow), Martin Eichenbaum (Federal Reserve Bank of Chicago), Sergio Rebelo (0000-0001-7097-8184, Centre for Economic Policy Research)
Year2016
Volume124
Issue4
Pages1088-1147
Publication date2016-07-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueJournal of Political Economy (JOURNAL)
Journal identifiersISSN: 0022-3808 • E-ISSN: 1537-534X
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/686732
OpenAlexW3125812377
LanguageEN
Citations received26
References cited28

Some booms in housing prices are followed by busts. Others are not. It is generally \ndi¢ cult to Önd observable fundamentals that are useful for predicting whether a boom \nwill turn into a bust or not. We develop a model consistent with these observations. \nAgents have heterogeneous expectations about long-run fundamentals but change their \nviews because of ìsocial dynamics.îAgents with tighter priors are more likely to convert \nothers to their beliefs. Boom-bust episodes typically occur when skeptical agents \nhappen to be correct. The booms that are not followed by busts typically occur when \noptimistic agents happen to be correct

Boom · Bust · Economics · Keynesian economics · Monetary economics · Complex Systems and Time Series Analysis · Economic theories and models · Engineering · Housing Market and Economics

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Unique citing works26
Citations per year2,6
Citation span2016 - 2026 (11)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 25

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