Economics at your fingertips  

Structural Breaks and Explosive Behavior in the Long-Run: The Case of Australian Real House Prices, 1870–2020

Esteve Vicente () and Maria Prats ()
Additional contact information
Esteve Vicente: Departamento de Economia Aplicada II, Universidad de Valencia, Avda. dels Tarongers, s/n, 46022 Valencia, Spain

Economics - The Open-Access, Open-Assessment Journal, 2021, vol. 15, issue 1, 72-84

Abstract: In this article, we use tests of explosive behavior in real house prices with annual data for the case of Australia for the period 1870–2020. The main contribution of this paper is the use of very long time series. It is important to use longer span data because it offers more powerful econometric results. To detect episodes of potential explosive behavior in house prices over this long period, we use the recursive unit root tests for explosiveness proposed by Phillips et al. (2011), (2015a,b). According to the results, there is a clear speculative bubble behavior in real house prices between 1997 and 2020, speculative process that has not yet been adjusted.

Keywords: house price; explosiveness; recursive unit root test; multiple structural breaks (search for similar items in EconPapers)
JEL-codes: E31 E62 H62 R21 R39 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1515/econ-2021-0006

Access Statistics for this article

Economics - The Open-Access, Open-Assessment Journal is currently edited by Katharine Rockett

More articles in Economics - The Open-Access, Open-Assessment Journal from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

Page updated 2023-06-15
Handle: RePEc:bpj:econoa:v:15:y:2021:i:1:p:72-84:n:1