bubble. In this chapter, we review the stylized facts of housing bubbles and discuss theories that can potentially explain … swings in simple rational models. An incorrectly underpriced default option can make rational bubbles more likely. Many … nonrational explanations for real estate bubbles exist, but the most promising theories emphasize some form of trend chasing …

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 …

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 … those places will overbuild more in response to a bubble. The data show that the price run-ups of the 1980s were almost …

, held by both developers and households. This boom may turn out to be a housing bubble followed by a crash, yet that future …

, as America experienced a massive housing bubble. Moreover prices in some metropolitan areas grew even faster. Prices in … this time. As the bubble burst, that index dropped by a third and major financial institutions became insolvent, at least … Alan Greenspan, former chairman of the Federal Reserve Board, and his successor Benjamin Bernanke for causing the bubble by …