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Dec
5
UCLouvain Economics Seminar - Jochen Mankart
By UCLouvain Economics Seminar

Jochen Mankart

(Bundesbank)

will give a presentation on

House Price Expectations and Housing Choice

Abstract:
What is the role of heterogeneous house-price expectations for boom-bust cycles in the housing market? We exploit a unique Dutch panel data set on households' house price expectations and their consumption, savings and housing choices for the period 2003-2016. This period was characterized by a pronounced boom-bust cycle in the housing market. Conditioning the sample on household heads who report non-zero house price expectations, we nd that expectations closely track realized house prices. We next develop a structural life-cycle model of the Dutch housing market where we distinguish household types according to their house price expectations. We employ a calibrated model variant to test if observed variations in expectations can account for the housing boom-bust cycle. First results show that our model closely matches the observed uctuations of the rent-to-price ratio in the data but overshoots the size of the housing boom.

Date
05 December
Time
12:45 - 14:00
Location
Doyen 22
Place des Doyens, 1
Ottignies-Louvain-la-Neuve,
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