Testing for Bubbles in Housing Markets: New Results Using a New Method

José Eduardo Gómez G. (jgomezgo@banrep.gov.co), Jair Ojeda-Joya, Catalina Rey Guerra (mreyguer@banrep.gov.co) and Natalia Sicard (nsicares@banrep.gov.co)
Authors registered in the RePEc Author Service: Jose Gomez-Gonzalez

Borradores de Economia from Banco de la Republica de Colombia

Abstract: In the context of financial crises influenced by the development and burst of housing price bubbles, the detection of exuberant behaviors in the financial market and the implementation of early warning diagnosis tests are of vital importance. This paper applies the new method developed by Phillips et al (2012) for detecting bubbles in the Colombian residential property market. The empirical results suggest that currently the country could be experiencing a price bubble, when the CPI and the housing rent index are used as deflators. We do not check the robustness of these results to alternative deflators, such as a household income index and a land price index, due to the lack of monthly data on these indicators.

Keywords: Housing-price bubbles; Unit-root tests; Colombia. (search for similar items in EconPapers)
JEL-codes: C22 G12 R31 (search for similar items in EconPapers)
Pages: 11
Date: 2013-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://doi.org/10.32468/be.753 (application/pdf)

Related works:
Working Paper: Testing for Bubbles in Housing Markets: New Results Using a New Method (2013)
Working Paper: Testing for bubbles in housing markets: new results using a new method (2013)
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:bdr:borrec:753

Access Statistics for this paper

More papers in Borradores de Economia from Banco de la Republica de Colombia Cra 7 # 14-78. Contact information at EDIRC.
Bibliographic data for series maintained by Clorith Angélica Bahos Olivera (cbahosol@banrep.gov.co).