Testing the efficiency of the Norwegian housing market
AbstractThe question of whether or not the housing market is efficient is posed by an increasing number of economists, policymakers, homebuyers, and homesellers. This article tests the efficiency hypothesis on data from the housing market in Oslo over the period 1991-2002, employing the Case-Shiller time-structure test on a repeat-sales house price index and returns to housing. We demonstrate that both the repeat-sales house price index and returns contain time structure and that the housing market is characterized by inefficiencies. We also find, surprisingly, that the housing market consistently yields higher appreciation at lower volatility than the stock market over the period.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Urban Economics.
Volume (Year): 64 (2008)
Issue (Month): 2 (September)
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Web page: http://www.elsevier.com/locate/inca/622905
Efficient market Excess returns House prices Housing market;
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