Is There Bubble Price in the Real Estate of Cear¨¢? A Post-Keynesian Approach
This research is to investigate the evidence of a bubble price formation in the real estate sector of Cear¨¢ between the period of 2007 and 2010. The research applied for the Post-Keynesian Theory based on the asset bubble speculative definition. By using the time series co-integration,the Augmented Dickey-Fuller Test (ADF) identifies the unit root in all variables. However all variables are stationary when integrated in first order. The Johansen Test identified one co-integrating vector between the average selling price per square meter and the average construction cost per square meter. This result, according to the Post-Keynesian Theory, was rejected evidence of real estate price bubble formation in the regions studied. The Johansen Test also detected co-integration between home credit and the average selling price per square meter, indicating that home credit has kept stable for real estate price increase.
Volume (Year): 5 (2013)
Issue (Month): 4 (December)
|Contact details of provider:|| Postal: 1568 Merivale Rd. Suite # 618, Ottawa, Ontario, Canada K2G 5Y7|
When requesting a correction, please mention this item's handle: RePEc:oul:tncr09:v:5:y:2013:i:4:p:96-103. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Denny Liao)or (Jen Ma)
If references are entirely missing, you can add them using this form.