Booms and Busts in the UK Housing Market
John Muellbauer () and
Anthony Murphy ()
No 1615, CEPR Discussion Papers from C.E.P.R. Discussion Papers
The often volatile behaviour of UK house prices between 1957 and 1994 is analysed in an annual econometric model. Theory suggests that financial liberalization of mortgage markets in the 1980s should have led to notable shifts in house price behaviour. The evidence supports the predictions of theory, suggesting shifts took place in wealth effects, as in the consumption function, and that real interest rates and income expectations became more important. The presence of transactions costs suggests important non-linearities in house price dynamics. The paper also contains an explicit econometric treatment of expectations, demography, supply spillovers from the rented sector and of composition biases in the official house price index.
Keywords: Asset Market Inefficiency; Asset Price Volatility; Econometrics of House Prices; Financial Liberalization (search for similar items in EconPapers)
JEL-codes: G14 R21 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (195) Track citations by RSS feed
Downloads: (external link)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at firstname.lastname@example.org
Journal Article: Booms and Busts in the UK Housing Market (1997)
Working Paper: Booms and Busts in the UK Housing Market (1996)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:1615
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=1615
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().