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 …

of a speculative price bubble are raised. However, studies on bubbles in house prices are scarce and provide mixed …-of-the-art methodology we test for speculative bubbles both at a national and at the city level. Furthermore, we apply two new testing … definition of a speculative bubble: We define price movements as bubbles when explosive growth of prices is not supported by …