Renewed Momentum in the German Housing Market: Boom or Bubble?

Xi Chen and Michael Funke

No 4287, CESifo Working Paper Series from CESifo

Abstract: The renewed momentum in the German housing market has led to concerns that Germany is vulnerable to asset price shocks. In this paper, we apply recently developed recursive unit root tests to detect the beginning and the end of potential speculative bubbles in Germany over the sample period 1987Q3 – 2012Q4. Overall, we find that actual house prices are not significantly disconnected from underlying economic fundamentals. Thus, there is no evidence of speculative house price bubbles in Germany.

Keywords: Germany; house price bubbles; right-tailed unit root tests (search for similar items in EconPapers)
JEL-codes: C22 C53 E52 R31 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_4287

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