Systemic risk must include the housing market, though economists have not generally focused on it. We begin construction of an agent-based model of the housing market with individual data from Washington, DC. Twenty years of success with agent-based models of mortgage prepayments give us hope...

On 15th November 2012 in Copenhagen, SUERF and Nykredit in association with Danmarks Nationalbank organised a conference on “Property prices and real estate financing in a turbulent world.” The papers included in this SUERF Study are based on contributions to the conference.

Finanzmarktkrisen entstehen häufig in Folge von Immobilienpreisblasen. In dieser Arbeit wird die Entstehung von Immobilienpreisblasen unter Berücksichtigung der spezifischen Eigenschaften von Immobilienmärkten sowie von Wechselwirkungen zwischen Immobilien- und Finanzmärkten untersucht und...

In this paper the authors present an agent-based model of a credit network economy. The artificial economy includes different economic agents that interact using simple behavioral rules through various markets, i.e., the consumption goods market, the labor market, the credit market and the...

This paper investigates the housing and mortgage markets by means of an agent-based macroeconomic model of a credit network economy. A set of computational experiments have been carried out in order to explore the effects of different households’ creditworthiness conditions required by banks...

From a broad macro-financial structure perspective, overly easy credit conditions gave rise to house price booms and busts in several advanced economies (e.g., Ireland, Spain, and the U.S.), and, more specifically in the U.S., an underpricing of risk made possible by regulatory arbitrage and...

Housing is one of the major socio-economic problems in Turkey. High intensivity of spontaneous settlements (gecekondu), nearly 40 % in urban area, would be accepted as the sufficient criterion for the level of the housing question in Turkey. Additionally there are important quality problems in...

The surge in subprime mortgage defaults during the Great Recession triggered trillions of dollars of losses in the financial sector and accounted for more than 50% of foreclosures at the height of the crisis. In particular, subprime mortgages originated in 2006-2007 were three times more likely...

The late 1990s through the mid-2000s was a period of historic growth in mortgage lending and house prices and there is intense debate over whether lending growth was a cause or consequence of house price growth. I show that lending growth was strongest for lower-income and minority borrowers....

From a broad macro-financial structure perspective, credit conditions have gaven rise to house price booms and busts in several advanced economies (e.g., Ireland, Spain, and the U.S.), and, more specifically in the U.S., an underpricing of risk made possible by regulatory arbitrage and shadow...