The interaction of actual and fundamental house prices: A general model with an application to Denmark and Sweden

Arbeitspapier

The paper presents a general method for estimating a country's level of fundamental house prices and its interaction with actual house prices. We set up a unified empirical model which can be used to analyze the time-series behavior of the fundamental house price and to test various hypotheses regarding its relation to the actual house price. To illustrate how the method works, we apply it to data for Denmark and Sweden. We find a tendency for actual house prices to converge on fundamental prices, albeit rather slowly.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: EPRU Working Paper Series ; No. 2016-04

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Housing Supply and Markets ; Asset Pricing; Trading Volume; Bond Interest Rates ; Multiple or Simultaneous Equation Models: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
• Thema: fundamental house prices ; house price dynamics ; housing bubbles

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Birch Sørensen, Peter ; Bergman, U. Michael
• Ereignis: Veröffentlichung
• (wer): University of Copenhagen, Economic Policy Research Unit (EPRU)
• (wo): Copenhagen
• (wann): 2016

Weitere Informationen

• Handle: http://hdl.handle.net/10419/175496
• Letzte Aktualisierung: 12.07.2024, 13:21 MESZ