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Using Agent-Based Modeling To Simulate The Foreclosure Contagion Effect, Andrew J. Collins, Michael J. Seiler
Using Agent-Based Modeling To Simulate The Foreclosure Contagion Effect, Andrew J. Collins, Michael J. Seiler
Engineering Management & Systems Engineering Faculty Publications
A foreclosed property can have a negative impact on the prices of other properties within its neighborhood and these reduced property prices can lead to further foreclosures within the neighborhood; this is known as the foreclosure contagion effect. This effect has been demonstrated, within the real estate literature, to occur. Traditionally, real estate research have used statistical regression to analysis this issues. The application of Agent-based Modeling and Simulation (ABMS) has risen in the last 15 years and has successfully been used to model complexity situations, e.g., the real estate market. ABMS offers a way to explore the impact of …