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Speculative housing markets and rent control : insights from nonlinear economic dynamics
Schmitt, Noemi; Westerhoff, Frank H. (2022): Speculative housing markets and rent control : insights from nonlinear economic dynamics, in: Bamberg: Otto-Friedrich-Universität, S. 141–163.
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Year of publication:
2022
Pages:
Source/Other editions:
Journal of economic interaction and coordination, 17 (2022), 1, S. 141–163 - ISSN: 1860-711X
Year of first publication:
2022
Language:
English
Abstract:
We propose a novel housing market model to explore the effectiveness of rent control. Our model reveals that the expectation formation and learning behavior of boundedly rational homebuyers, switching between extrapolative and regressive expectation rules subject to their past forecasting accuracy, may create endogenous housing market dynamics. We show that policymakers may use rent control to reduce the rent level, although such policies may have undesirable effects on the house price and the housing stock. However, we are also able to prove that well-designed rent control may help policymakers to stabilize housing market dynamics, even without creating housing market distortions.
GND Keywords: ; ; ; ; ;
Wohnungsmarkt
Mietpreis
Politische Kontrolle
Erwartungsbildung
Dynamisches Modell
Gleichgewicht
Keywords: ; ; ;
Housing market dynamics
Expectation formation and learning behavior
Rent control
Steady state, stability and out-of-equilibrium analysis
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RVK Classification:
Type:
Article
Activation date:
August 16, 2022
Permalink
https://fis.uni-bamberg.de/handle/uniba/55042