[HTML][HTML] Subjective housing price expectations, falling natural rates, and the optimal inflation target
US households' housing price expectations deviate systematically from full-information
rational expectations:(i) expectations are updated on average too sluggishly,(ii) expectations …
rational expectations:(i) expectations are updated on average too sluggishly,(ii) expectations …
Heterogeneous expectations, housing bubbles and tax policy
C Martin, N Schmitt, F Westerhoff - Journal of Economic Behavior & …, 2021 - Elsevier
We integrate a plausible expectation formation and learning scheme of boundedly rational
investors into a standard user cost housing market model, involving a rental and a housing …
investors into a standard user cost housing market model, involving a rental and a housing …
Identifying booms and busts in house prices under heterogeneous expectations
We introduce heterogeneous expectations in a standard housing market model linking
housing rental levels to fundamental buying prices. Using quarterly data we estimate the …
housing rental levels to fundamental buying prices. Using quarterly data we estimate the …
Complex dynamics in a nonlinear duopoly model with heuristic expectation formation and learning behavior
We develop a nonlinear duopoly model in which the heuristic expectation formation and
learning behavior of two boundedly rational firms may engender complex dynamics. Most …
learning behavior of two boundedly rational firms may engender complex dynamics. Most …
Comparing behavioural heterogeneity across asset classes
We estimate an endowment-based asset pricing model in which agents have
heterogeneous and time-varying beliefs about the future price on a range of asset classes …
heterogeneous and time-varying beliefs about the future price on a range of asset classes …
Necessary and sufficient conditions for the roots of a cubic polynomial and bifurcations of codimension-1,-2,-3 for 3D maps
We reconsider the well-known conditions which guarantee the roots of a third-degree
polynomial to be inside the unit circle. These conditions are important in the stability analysis …
polynomial to be inside the unit circle. These conditions are important in the stability analysis …
Stability conditions for three-dimensional maps and their associated bifurcation types
M Lines, N Schmitt, F Westerhoff - Applied Economics Letters, 2020 - Taylor & Francis
We present analytical tools that may be useful in studying the behaviour of dynamic
economic models formulated in discrete time. In particular, we provide a simplified set of …
economic models formulated in discrete time. In particular, we provide a simplified set of …
Speculative housing markets and rent control: insights from nonlinear economic dynamics
N Schmitt, F Westerhoff - Journal of Economic Interaction and Coordination, 2022 - Springer
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 …
model reveals that the expectation formation and learning behavior of boundedly rational …
Housing markets, expectation formation and interest rates
C Martin, N Schmitt, F Westerhoff - Macroeconomic Dynamics, 2022 - cambridge.org
Based on a behavioral stock-flow housing market model in which the expectation formation
behavior of boundedly rational and heterogeneous investors may generate endogenous …
behavior of boundedly rational and heterogeneous investors may generate endogenous …
Nonlinear asset-price dynamics and stabilization policies
We first present a brief review of nonlinear asset-pricing models and contributions in which
such models have been used as benchmarks to evaluate the effectiveness of a number of …
such models have been used as benchmarks to evaluate the effectiveness of a number of …