Glaeser, Edward L.; Nathanson, Charles G. - In: Handbook of regional and urban economics : volume 5, (pp. 701-751). 2015
Housing markets experience substantial price volatility, short-term price change momentum, and mean reversion of prices … 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 …