Can Learning Explain Boom-Bust Cycles in Asset Prices? An Application to the US Housing Boom

  • Colin Caines
  • Published 2016

Abstract

Explaining asset price booms poses a di cult question for researchers in macroeconomics: how can large and persistent price growth be explained in the absence large and persistent variation in fundamentals? This paper argues that boom-bust behavior in asset prices can be explained by a model in which boundedly rational agents learn the process for prices… (More)

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Cite this paper

@inproceedings{Caines2016CanLE, title={Can Learning Explain Boom-Bust Cycles in Asset Prices? An Application to the US Housing Boom}, author={Colin Caines}, year={2016} }