EconPapers    
Economics at your fingertips  
 

WAS THERE A BRITISH HOUSE PRICE BUBBLE? EVIDENCE FROM A REGIONAL PANEL

Gavin Cameron, John Muellbauer () and Anthony Murphy ()

ERES from European Real Estate Society (ERES)

Abstract: Many observers, including the OECD are alarmed by the seeming bubble type behaviour of British house prices. This paper investigates with a dynamic panel data model of British regional house prices between 1972 and 2003. The model consists of a system of inverted housing demand equations, incorporating spatial interactions and lags and relevant spatial parameter heterogeneity. The results are data consistent, with plausible long-run solutions and include a full range of explanatory variables. Novel features of the model include transaction cost effects influencing the speed of adjustment and interaction effects between an index of credit availability and real and nominal interest rates. The model explains periods of boom and bust in the British housing market, as well as the ripple effect from the London housing market to the rest of the country. The evidence suggests that so far there has been no significant bubble in the British housing market in the new millenium but cannot rule out some bubble behaviour in 1988-9.

JEL-codes: R3 (search for similar items in EconPapers)
Date: 2006-01-01
References: Add references at CitEc
Citations: View citations in EconPapers (39) Track citations by RSS feed

Downloads: (external link)
https://eres.architexturez.net/doc/oai-eres-id-eres2006-150 (text/html)

Related works:
Working Paper: Was There a British House Price Bubble? Evidence from a Regional Panel (2006) Downloads
Working Paper: Was There A British House Price Bubble? Evidence from a Regional Panel (2006) Downloads
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: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2006_150

Access Statistics for this paper

More papers in ERES from European Real Estate Society (ERES)
Bibliographic data for series maintained by Architexturez Imprints ().

 
Page updated 2019-09-22
Handle: RePEc:arz:wpaper:eres2006_150