Agent Based modeling of Housing Asset Bubble: A Simple Utility Function Based Investigation

dc.contributor.author	Gangopadhyay, Kausik
dc.contributor.author	Guhathakurta, Kousik
dc.date.accessioned	2016-05-27T07:50:34Z
dc.date.available	2016-05-27T07:50:34Z
dc.date.issued	2013
dc.identifier.uri	http://hdl.handle.net/2259/726
dc.description	1 Indian Institute of Management Kozhikode, IIMK 2 Kousik Guhathakurta, Indian Institute of Management Kozhikode, IIMK	en_US
dc.description.abstract	The housing asset bubble and mortgage crisis of 2007-08 in the US market poses a challenge to understanding of market and hypotheses related to market efficiency. The contribution of our paper is bifold. First, we present a survey of the existing literature which explains the housing asset bubble. We have emphasized on agent based modeling approaches in this context. The second part of the paper frames an economic model to demonstrate the power of irrational “exuberance hypothesis”, a term coined by Robert J Shiller. Using a felicity function based framework, this shows that the power of irrational expectation in bringing about an artificial and unintended boost in demand for investment of housing asset.	en_US
dc.language.iso	en	en_US
dc.publisher	Indian Institute of Management Kozhikode	en_US
dc.relation.ispartofseries	;IIMK/WPS/129/ECO/2013/15
dc.subject	Housing Asset Bubble	en_US
dc.subject	Market	en_US
dc.subject	US	en_US
dc.title	Agent Based modeling of Housing Asset Bubble: A Simple Utility Function Based Investigation	en_US
dc.type	Working Paper	en_US