The Spanish housing market: is it fundamentally broken?

Juan Cuestas and Merike Kukk

No 2019/04, Working Papers from Economics Department, Universitat Jaume I, Castellón (Spain)

Abstract: This paper aims to investigate the relationship between housing prices and their fundamental determinants using the example of Spain and considering the possibility of structural breaks in the relationship. We find that the cointegrating coefficient estimates are quite unstable and need to be estimated for different subperiods. Specifically we find that the standard fundamentals explain the behaviour of equilibrium house prices well during the boom-bust period. However, only corporate profit or capital income seems to explain the evolution in recent years.

Keywords: house prices; capital income; wage income; DOLS; structural breaks; crisis (search for similar items in EconPapers)
JEL-codes: E21 E51 R20 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2019
New Economics Papers: this item is included in nep-eec, nep-mac and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: The Spanish housing market: is it fundamentally broken? (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:jau:wpaper:2019/04

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