Housing markets experience substantial price volatility, short term price change momentum and mean reversion of prices … bubble. In this paper, we review the stylized facts of housing bubbles and discuss theories that can potentially explain … bubbles. Many non-rational explanations for real estate bubbles exist, but the most promising theories emphasize some form of …

of housing bubbles that predicts that places with more elastic housing supply have fewer and shorter bubbles, with … smaller price increases. However, the welfare consequences of bubbles may actually be higher in more elastic places because …

This paper studies the role of disagreement in amplifying housing cycles. Speculation is easier in the land market than … land both facilitates construction and intensifies the speculation that causes booms and busts in house prices. This …

which confirm the theory …

How can mortgages be redesigned to reduce housing market volatility, consumption volatility, and default? How does …

Emerging market economies are fertile ground for the development of real estate and other financial bubbles. Despite … value in the developed world. Bubbles are beneficial because they provide domestic stores of value and thereby reduce … capital flow reversals. We show that domestic financial underdevelopment not only facilitates the emergence of bubbles, but …