IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Is There A Stable Relationship Between Real Interest Rates And Housing Prices? Evidence From Several Euro Area Countries

  • José Manuel SÁNCHEZ SANTOS

    ()

    (Department of Applied Economics, University of A Coruña, Spain)

  • José Pablo ABEAL VÁZQUEZ

    ()

    (Department of Applied Economics, University of A Coruña, Spain)

Registered author(s):

    This paper analyzes the relationship between real interest rates and housing prices in three European Union countries (France, Spain and the Netherlands) between 1999 and 2010. The main objective is to test whether there is a stable long-run relationship between both variables, as well as whether there are differences across countries. In order to do so, I use different real interest rates (short-term and long-term) and different housing price indices (nominal and real), and apply cointegration techniques and propose an error correction model, following the two-stage methodology suggested by Engle and Granger, in order to examine the different dynamics in the short and the long term. The main conclusion is that the relationship between real interest rates and housing prices is weak, although there are differences across countries. This has some implications for the single monetary policy conducted by the European Central Bank.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.seap.usv.ro/annals/arhiva/USVAEPA_VOL.11,NR.2(14),2011_fulltext.pdf
    Download Restriction: no

    Article provided by "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration in its journal The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration.

    Volume (Year): 11 (2011)
    Issue (Month): 2(14) (December)
    Pages: 46-55

    as
    in new window

    Handle: RePEc:scm:ausvfe:v:11:y:2011:i:2(14):p:46-55
    Contact details of provider: Postal: Universitatii 9, 720225; Suceava
    Phone: +40 230 522978
    Fax: +40 230 216147
    Web page: http://www.seap.usv.ro
    Email:


    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:scm:ausvfe:v:11:y:2011:i:2(14):p:46-55. 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: (Liviu Scutariu)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.