ABSTRACT
Understanding how prices are determined in the market and how they change over time is central to the study of economics. For example, many people in the United States have been affected by the changes in housing prices, as the median price of a house increased from about $170,000 in 2000 to about $260,000 in 2007, fell to less than $210,000 at the bottom of the housing crisis in 2009, and then rose to more than $300,000 by 2017. 1 Why have home prices fluctuated so much in less than two decades?
