REGRESSIVE WELFARE EFFECTS OF HOUSING BUBBLES

Housing Bubbles: A Survey

The past 25 years have represented two periods of extreme movements in U.S. and global house prices that appear to be much larger than can be easily explained by changes in fundamentals. These episodes spurred research on housing bubbles that focused attention on the role of outsized expectations in excessive house price appreciation. By contrast, some economists pointed to alternative explanat...

Do Housing Bubbles Affect Consumption?

Standard optimzing models of consumption postulate that consumption is a function of wealth and implicitly assume that wealth is comprised of assets whose market price coincides with the fundamental price, defined as the expected present value of future dividends. We use a simple theoretical framework to show that when the market price deviates from the fundamental price, consumption behavior w...

Housing Bubbles and Policy Analysis∗

This paper provides a theory of credit-driven housing bubbles in an infinite-horizon production economy. Entrepreneurs face idiosyncratic investment tax distortions and credit constraints. Housing is an illiquid asset and also serves as collateral for borrowing. A housing bubble can form because houses command a liquidity premium. The housing bubble can provide liquidity and relax credit constr...

The effects of indoor vs outdoor housing on pig welfare

It was observed that when compared with indoor pigs, outdoor piglets spent significantly more time exploring and feeding and less time belly-nosing, showing oro-nasal or agonistic behaviour towards their pen mates. Belly-nosing and oro-nasal behaviours generally are considered aggressive rather than natural (Petersen, 1994). Höetzel et al. (2004) proposed that the decrease in unnatural behaviou...

Effects of group housing on sow productivity and welfare: review