Document Type

Conference Paper

Publication Date

2012

Publication Title

The 2012 Southeastern INFORMS Conference Proceedings

Pages

237-242

Conference Name

The 2012 Southeastern INFORMS Conference, October 4-5, 2012, Myrtle Beach, South Carolina

Abstract

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 different factors on the real estate market without having to experiment on real-world systems. This paper looks at application of ABMS to investigate the foreclosure contagion effect.

Comments

© 2012 A.J. Collins and Michael J. Seiler.

"Ownership of a Proceedings submission remains with the author or authors, except to publish here."

Included with the kind written permission of the author.

ORCID

0000-0002-8012-2272 (Collins)

Original Publication Citation

Collins, A. J., & Seiler, M. J. (2012). Using agent based modeling to simulate the foreclosure contagion effect. The 2012 Southeastern INFORMS Conference, October 4-5, 2012, Myrtle Beach, South Carolina.

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