Economics at your fingertips  

Housing cycles in the major euro area countries

Luis Alvarez, G. Bulligan, A. Cabrero, Laurent Ferrara () and Harald Stahl ()

Working papers from Banque de France

Abstract: The recent burst of the house price bubble in the United States and its spillover effects on real economies worldwide has rekindled the interest in the role of housing in the business cycle. In this paper, we investigate the relationships between housing cycles among the four major euro area countries (Germany, France, Italy and Spain) over the sample 1980q1 – 2008q4. Our main findings are that GDP cycles between 1.5 and 8 years show a high degree of comovement across these four countries, reflecting trade linkages. In contrast comovements in housing market cycles between 1.5 and 8 years are much weaker, idiosyncratic factors playing a major role. House prices are even less related across countries than quantities (residential investment, building permits, housing starts …). We find however much stronger relationships since 1999, i.e. in the common monetary policy period.

Keywords: Housing cycles; synchronisation measures; euro area countries. (search for similar items in EconPapers)
JEL-codes: E32 R21 R32 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15) Track citations by RSS feed

Downloads: (external link) ... g-paper_269_2009.pdf (application/pdf)

Related works:
Working Paper: Housing Cycles In The Major Euro Area Countries (2010) 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:

Access Statistics for this paper

More papers in Working papers from Banque de France Banque de France 31 Rue Croix des Petits Champs LABOLOG - 49-1404 75049 PARIS. Contact information at EDIRC.
Bibliographic data for series maintained by Michael brassart ().

Page updated 2021-01-12
Handle: RePEc:bfr:banfra:269