IDEAS home Printed from https://ideas.repec.org/p/red/sed013/868.html
   My bibliography  Save this paper

House Price Dynamics with Household Debt: the Korean Case

Author

Listed:
  • Hyun Jeong Kim

    (the Bank of Korea)

Abstract

This paper revisits long-run determinants of house prices and analyzes the house price dynamics with the Korean data, while taking into account the close relationships between house prices and household debt. We also attempt to forecast trend house prices over the next five years. The result of cointegrating regressions shows that the rise in house prices during the 2000s in Korea was strongly related with the steep increase in household debt. And, as the estimated error correcting process reveals, the adjustment in house prices has been made gradually, as it takes about four years for the difference between actual and fundamental (long-run) house prices to be reduced by half. Finally, the mid-run house price forecast shows that house prices are not likely to rise as sharply as they did in the 2000s in near future, when considering the long-term changes in the macro-financial environment.

Suggested Citation

  • Hyun Jeong Kim, 2013. "House Price Dynamics with Household Debt: the Korean Case," 2013 Meeting Papers 868, Society for Economic Dynamics.
    • Handle: RePEc:red:sed013:868
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    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:red:sed013:868. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Zimmermann (email available below). General contact details of provider: https://edirc.repec.org/data/sedddea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.