Heterogeneous beliefs and housing-market boom-bust cycles

Hajime Tomura*

*この研究の対応する著者

研究成果: Article査読

3 被引用数 (Scopus)

抄録

This paper presents a business cycle model capturing the stylized features of housing-market boom-bust cycles in developed countries. The model implies that over-optimism of mortgage borrowers generates housing-market boom-bust cycles, if mortgage borrowers are credit-constrained and savers do not share their optimism. This result holds without price stickiness. If price stickiness is introduced into the model, then the model replicates a low policy interest rate during a housing boom as an endogenous reaction to a low inflation rate, given a Taylor rule. Thus, monetary easing observed during housing booms are consistent with the presence of over-optimism causing boom-bust cycles.

本文言語English
ページ(範囲)735-755
ページ数21
ジャーナルJournal of Economic Dynamics and Control
37
4
DOI
出版ステータスPublished - 2013 4月
外部発表はい

ASJC Scopus subject areas

  • 経済学、計量経済学
  • 制御と最適化
  • 応用数学

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