3 papers
econ.TH2025
Housing Bubbles with Phase Transitions
Tomohiro Hirano, Alexis Akira Toda
We analyze how equilibrium housing prices are determined in the process of economic development within an overlapping generations model with perfect housing and rental markets. We…
econ.TH2024
Unbalanced Growth and Land Overvaluation
Tomohiro Hirano, Alexis Akira Toda
Historical trends suggest the decline in importance of land as a production factor but its continued importance as a store of value. Using an overlapping generations model with lan…
econ.TH2024
Equilibrium Selection in Pure Bubble Models by Dividend Injection
Tomohiro Hirano, Alexis Akira Toda
Rational pure bubble models feature multiple (and often a continuum of) equilibria, which makes model predictions and policy analyses non-robust. We show that when the interest rat…