Tag Archives: housing market

An Increasing Marginal Utility May Produce Economic Bubbles

In my earlier post I showed the  demand curve for a product A in case the marginal utility of this product increases. I am reproducing it here . It is a “normal” demand curve except that it  is truncated at point m … Continue reading

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Charles P. Kindleberger on Economic Bubbles and US Asset Bubble of the 2000s

Economic historian Charles P. Kindleberger writes in his “Manias, Panics, and Crashes”(C.P.Kindleberger, 1978 edition, page 17): “As firms and households see others making profits from speculative purchases and resales, they tend to follow. When the number of firms and households … Continue reading

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The Phenomenon of Price Threshold in US Housing Bubble of the 2000s

So there was a drastic change in the speculation volume ratio to all sales of homes (a threshold) in the course of US housing bubble of the 2000s (see post  “Critical Mass of Speculation Triggers Asset bubbles”). I have hypothesized that crossing … Continue reading

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