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view/download model file: HousingMarketRev8.3.nlogo
This model is an implementation of a simple housing market, with adjustable interest rate. The goal is to look for the emergence of a bubble when a shock is introduced to the system (some point at which average housing price first increases then falls with interest rate).
Fluctuate the interest rate and observe the foreclosures - as pink houses - in the landscape. Landscape parameters can be also adjusted.
The average house price, the mortgage and the balance sheets are the most important plots. Their simultaneous variation shows whether a crisis occurs or not.
We thank for support the Center for Social Complexity at George Mason University, USA and particularly professor Robert Axtell.