Fiche du document
2023
- handle: 10670/1.pl7fpx
- halshs: halshs-04120338
- doi: 10.1007/s00199-023-01501-4
- WOS: WOS:001005060300002
Ce document est lié à :
info:eu-repo/semantics/altIdentifier/doi/10.1007/s00199-023-01501-4
info:eu-repo/semantics/OpenAccess
Mots-clés
Bubble Housing Self-fulfilling fluctuations E - Macroeconomics and Monetary Economics/E.E3 - Prices, Business Fluctuations, and Cycles/E.E3.E32 - Business Fluctuations • Cycles E - Macroeconomics and Monetary Economics/E.E4 - Money and Interest Rates/E.E4.E44 - Financial Markets and the Macroeconomy R - Urban, Rural, Regional, Real Estate, and Transportation Economics/R.R2 - Household Analysis/R.R2.R21 - Housing DemandSujets proches
Urban housing Homes Slum clearance Housing needs Housing--Social aspects Houses Affordable housing ResidencesCiter ce document
Clain‐chamosset‐yvrard Lise et al., « Rational housing demand bubble », HAL-SHS : économie et finance, ID : 10.1007/s00199-023-01501-4
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Résumé
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.