Neues BERG Working Paper Nr. 156 von Carolin Martin, Noemi Schmitt and Frank Westerhoff erschienen!


In der BERG Working Paper Series wurde von Carolin Martin, Noemi Schmitt und Frank Westerhoff ein neues Papier mit dem Titel „Heterogeneous expectations, housing bubbles and tax policy“ veröffentlicht.

Eine Gesamtübersicht aller bisher erschienenen BERG Working Paper finden Sie hier.



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 capital market. In particular, investors switch between heterogeneous expectation rules according to an evolutionary tness measure, given by the rules' past protability. We analytically show that our housing market model may produce endogenous boom-bust dynamics. Furthermore, we demonstrate that policy makers may use our model as a tool to explore how dierent tax policies may aect the housing market's steady state, its stability and out-of-equilibrium behavior. Keywords: Housing markets, bubbles and crashes, heterogeneous expectations, bounded rationality and learning, tax policy, steady state and stability analysis.