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Full-Text Articles in Computational Engineering
Using Real Property Layouts To Study The Foreclosure Contagion Effect In Real Estate With Agent-Based Modeling And Simulation, Daniele Vernon-Bido
Using Real Property Layouts To Study The Foreclosure Contagion Effect In Real Estate With Agent-Based Modeling And Simulation, Daniele Vernon-Bido
Computational Modeling & Simulation Engineering Theses & Dissertations
Foreclosures in the United States increased sharply from 2007 to 2009. These foreclosures had a spillover effect on neighboring property values causing additional foreclosures. This is known as the foreclosure contagion effect.
Recent studies have quantified the discount attributed to foreclosure contagion using equation-based techniques. However, the discount varied between studies and markets. Further studies using agent-based modeling and simulation have demonstrated the relationship between the discounts, the time a foreclosure remains on the market, the prevailing interest rates and the average property values.
This study uses agent-based modeling and simulation (ABMS) to explore the differences that varying neighborhood densities …