The Q theory and the Swedish housing market - an empirical test

Arbeitspapier

We argue that major changes in economic policy have resulted in a more market driven demand for housing investment in Sweden as a result of changes in policy during the end of the 1980s and beginning of the 1990s. The used investment theory is Tobin’s transparent Q theory. Our results indicate, for the last period of the sample (1993-2003 quarterly data) that a high degree of correlation between the Q ratio and the (logarithm of) two different variables for housing investment exist. An error correction regression model, controlling for structural breaks, indicates also a stable long run relationship could be detected for the logarithm of building starts and the Q ratio between 1993-2003 but not between 1981-1992.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2005:19

Classification and Topics

• Classification: Wirtschaft ; Investment; Capital; Intangible Capital; Capacity ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Housing Demand
• Subject: Tobin's Q ; housing investment ; error correction model ; structural break ; Tobin's Q ; Immobilienwirtschaft ; Schätzung ; Schweden ; Fehlerkorrekturmodell

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Berg, Lennart ; Berger, Tommy
• Event: Veröffentlichung
• (who): Uppsala University, Department of Economics
• (where): Uppsala
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/82754
• URN: urn:nbn:se:uu:diva-74358
• Last update: 10.03.2025, 11:43 AM CET