What are the effects of a housing bubble on the rest of the economy? We show that if firms and banks face collateral … constraints, a housing bubble initially raises credit demand by housing firms while leaving credit supply unaffected. It therefore … crowds out credit to non-housing firms. If time passes and the bubble lasts, however, housing firms eventually pay back their …

In this paper we use the notion of a housing bubble as an equilibrium in which some investors hold houses only for … the conditions under which housing bubbles can emerge. In such equilibria, the total housing stock is held by owners that … moves endogenously from a pure bubble to a housing bubble regime and vice versa are possible. This suggests that high asset …

Employing an agent-based model of the Spanish housing market, this paper explores the main drivers behind the large …

We develop an agent-based model of the UK housing market to study the impact of macroprudential policy experiments on … key housing market indicators. The heterogeneous nature of this model enables us to assess the effects of such experiments … on the housing, rental and mortgage markets not only in the aggregate, but also at the level of individual households and …

The aim of this paper is to characterize the cyclical properties of Spanish real and nominal housing related variables …. Our three main results are: First, housing appears to lead the business cycle. Second, fluctuation in home prices are …