The rise in Dublin city house prices: bubble, fad or just fundamentals
The recent dramatic rise in house prices in Dublin has been regularly discussed in the media. An obvious question is whether the seemingly ever-increasing house prices are driven by market fundamentals or by speculation? While the observed increase in house prices is due to excess demand for housing, it is the nature of this excess demand that we investigate in this paper. We decompose house prices in Dublin into fundamental and non-fundamental components using a variety of measures. A regime-switching model is estimated and tested to explore whether speculative bubbles, fads or just fundamentals drive house prices in Dublin. Our main findings suggest that there may be a speculative bubble in the Dublin house prices.
|Date of creation:||Jul 1999|
|Contact details of provider:|| Postal: Maynooth, Co. Kildare|
Web page: http://www.maynoothuniversity.ie/economics-finance-and-accounting
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:may:mayecw:n920799.pdf. 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: ()
If references are entirely missing, you can add them using this form.