• Media type: Report; E-Book
  • Title: Regulating speculative housing markets via public housing construction programs: Insights from a heterogeneous agent model
  • Contributor: Martin, Carolin [Author]; Westerhoff, Frank [Author]
  • Published: Bamberg: Bamberg University, Bamberg Economic Research Group (BERG), 2018
  • Language: English
  • ISBN: 978-3-943153-56-9
  • Keywords: housing markets ; policy experiments ; R21 ; D84 ; heterogeneous agent model ; boom-bust dynamics ; R31 ; extrapolative and regressive expectations ; public housing construction programs
  • Origination:
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  • Description: Since the instability of housing markets may be quite harmful for the real economy, we explore whether public housing construction programs may tame housing market fluctuations. As a workhorse, we use a behavioral stock-flow housing market model in which the complex interplay between speculative and real forces triggers realistic housing market dynamics. Simulations reveal that plausible and well-intended policy measures may turn out to be a mixed blessing. While public housing construction programs may reduce house prices, they seem to be incapable of bringing house prices much closer towards their fundamental values. In addition, these programs tend to drive out private housing constructions.
  • Access State: Open Access