IDEAS home Printed from https://ideas.repec.org/p/arz/wpaper/eres2003_112.html
   My bibliography  Save this paper

The stock-flow model for Sweden and the United Kindom. Econometric Analysis for the period 1970-1998

Author

Listed:
  • Bharat Barot
  • Yang Zan

Abstract

We estimate quarterly dynamic housing demand and investment supply models for Sweden and the UK for the sample period 1970-1998, using an Error Correction Method (ECM). In order to facilitate comparisons of results between Sweden and the UK we model both countries identically with approximately similar type of exogenous variables. The long run income elasticity for Sweden and the UK are constrained to be 1.0 respectively. The long runs semi-elasticity for interest rates is 2.1 and 0.9 for Sweden and the UK. The speed of adjustment on the demand side is 12% and 23% while on the supply side is 6% and 48% for Sweden respectively the UK. Granger causality tests indicate that income Granger causes house prices for Sweden, while for the UK there is also a feedback from house prices to income. House prices Granger causes financial wealth for Sweden, while for the UK it is vice versa. House prices cause household debt for Sweden, while for the UK there is a feedback from debt. Interest rates Granger cause house prices for Sweden and the UK. In both countries TobinÌs q Granger cause housing investment. Generally the diagnostic tests indicate that the model specifications were satisfactory to the unknown data generating process.

Suggested Citation

  • Bharat Barot & Yang Zan, 2003. "The stock-flow model for Sweden and the United Kindom. Econometric Analysis for the period 1970-1998," ERES eres2003_112, European Real Estate Society (ERES).
  • Handle: RePEc:arz:wpaper:eres2003_112
    as

    Download full text from publisher

    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2003-112
    Download Restriction: no

    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arz:wpaper:eres2003_112. 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: (Architexturez Imprints). General contact details of provider: http://edirc.repec.org/data/eressea.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.