Heterogeneous expectations, housing bubbles and tax policy

Arbeitspapier

We integrate a plausible expectation formation and learning scheme of boundedly rational investors into a standard user cost housing market model, involving a rental and a housing capital market. In particular, investors switch between heterogeneous expectation rules according to an evolutionary fitness measure, given by the rules' past profitability. We analytically show that our housing market model may produce endogenous boom-bust dynamics. Furthermore, we demonstrate that policy makers may use our model as a tool to explore how different tax policies may affect the housing market's steady state, its stability and out-of-equilibrium behavior.

Angaben zum Objekt

• ISBN: 978-3-943153-77-4
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: BERG Working Paper Series ; No. 156

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Expectations; Speculations ; Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes ; Housing Supply and Markets
• Thema: housing markets ; bubbles and crashes ; heterogeneous expectations ; bounded rationality and learning ; tax policy ; steady state and stability analysis

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Martin, Carolin ; Schmitt, Noemi ; Westerhoff, Frank H.
• Ereignis: Veröffentlichung
• (wer): Bamberg University, Bamberg Economic Research Group (BERG)
• (wo): Bamberg
• (wann): 2020

Weitere Informationen

• Handle: http://hdl.handle.net/10419/214657
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ