Booms, Busts and Ripples in British Regional Housing Markets
AbstractWe present and discuss an annual econometric model of regional house prices in Britain estimated over the period 1972 to 2003. The model, which consists of a system of inverted housing demand equations, is data consistent, incorporates spatial lags and errors, has some spatial coefficient heterogeneity, has a plausible long run solution and includes a full range of explanatory variables. We use our results to explain the periods of boom and bust and the ripple effect from London house prices to house prices elsewhere. We also address the issue of whether there has been a bubble in the British housing market
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Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 0512003.
Length: 41 pages
Date of creation: 06 Dec 2005
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Note: Type of Document - pdf; pages: 41
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House Prices; Ripple Effect; Bubble;
Find related papers by JEL classification:
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- E39 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-12-14 (All new papers)
- NEP-FMK-2005-12-14 (Financial Markets)
- NEP-GEO-2005-12-14 (Economic Geography)
- NEP-MAC-2005-12-14 (Macroeconomics)
- NEP-URE-2005-12-14 (Urban & Real Estate Economics)
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