Clain-Chamosset-Yvrard, LiseRaurich, XavierSeegmuller, Thomas2024-03-262024-06-0520240938-2259https://hdl.handle.net/2445/209243We provide a unified framework with demand for housing over the life cycle and financial frictions to analyze the existence and macroeconomic effects of rational housing bubbles. We distinguish a housing price bubble, defined as the difference between the housing market price and its fundamental value, from a housing demand bubble, which corresponds to a situation where a pure speculative housing demand exists. In an overlapping generation exchange economy, we show that no housing price bubble occurs. However, a housing demand bubble may occur, generating a boom in housing prices and a drop in the interest rate, when households face a binding borrowing constraint. The multiplicity of steady states and endogenous fluctuations can occur when credit market imperfections are moderate. These fluctuations involve transitions between equilibria with and without a housing demand bubble that generate large fluctuations in housing prices consistent with observed patterns. We finally extend the basic framework to a production economy and we show that a housing demand bubble increases housing prices, which can still be characterized by large fluctuations.42 p.application/pdfeng(c) Springer Verlag, 2024Bombolla immobiliàriaEspeculacióControl de preusReal estate bubbleSpeculationPrice controlinfo:eu-repo/semantics/article7432642024-03-26info:eu-repo/semantics/openAccess