This paper investigates previous research, to examine ways in which behavioural economics\nhelps us to understand how house prices are determined. In several respects, behavioural\neconomics seems to be an improvement over neoclassical economics, regarding variations\nand trends in house prices. This paper analyses theoretical and empirical evidence ââ?¬â??\ninvestigating topics such as loss aversion, house price bubbles, and herd behaviour. Historical\nperspectives (including the 2007/8 global financial crisis) are included, as well as differences\nbetween countries.
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