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Homeowner-made Housing Price Bubbles - East Germany's Example -

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Listed:
  • Kristof Dascher

    (Department of International Economic Policy, University of Freiburg)

Abstract

This paper argues that homeowners, if suffciently infuential, may attempt to manipulate housing prices. The paper presents an instance of, and sets out the political economy behind, one particular homeowner-made housing price bubble (in East Germany). Yet ultimately the paper suggests that homeowners may be responsible for housing price bubbles elsewhere, too. Namely, US homeowners may be the single driving force behind the latest US housing price boom that preceded the current real estate, and financial, crisis.

Suggested Citation

  • Kristof Dascher, 2010. "Homeowner-made Housing Price Bubbles - East Germany's Example -," Discussion Paper Series 11, Department of International Economic Policy, University of Freiburg, revised Feb 2010.
    • Handle: RePEc:fre:wpaper:11
    as

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    File URL: https://www.iep.uni-freiburg.de/discussion-papers/repec/fre/wpaper/files/dp11_homeownermade_housing_bubbles.pdf
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    References listed on IDEAS

    as
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    6. Glaeser Edward L & Gyourko Joseph, 2008. "The Case against Housing Price Supports," The Economists' Voice, De Gruyter, vol. 5(6), pages 1-8, October.
    7. Matthias Bernt, 2009. "Partnerships for Demolition: The Governance of Urban Renewal in East Germany's Shrinking Cities," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(3), pages 754-769, September.
    8. Michael C. Burda & Jennifer Hunt, 2001. "From Reunification to Economic Integration: Productivity and the Labor Market in Eastern Germany," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 32(2), pages 1-92.
    9. Dennis J. Snower & Christian Merkl, 2006. "The Caring Hand that Cripples: The East German Labor Market after Reunification," American Economic Review, American Economic Association, vol. 96(2), pages 375-382, May.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Homeowner Majority; Rent Persistence; Ratchet Effect; Policy Reform;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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