 The Determinants of Urban House Price Fluctuations in Sweden 1967-94Katinka Hort
No 1997:4, Working Paper Series from Uppsala University, Department of Economics Abstract: This paper asks if the dramatic fluctuations in Swedish single family house prices experienced over the last decade have only been driven by fundamental demand and supply factors or if they result also from speculative behaviour in the housing market. A restricted error-correction model of real house prices is estimated on a Swedish panel data set using a fully modified estimator of the cointegrating relation. The results suggest that the boom and bust experienced around 1990 was primarily driven by fundamentals. The short term equation explains about 70 percent of the total variation in real house price changes. The estimate of the error-correction parameter suggests that adjustment following a shock to the market is quite rapid as compared with other countries such as the U.S, the U.K and Norway. Keywords: house prices; adjustment dynamics; fundamentals; speculative behaviour (search for similar items in EconPapers) Published in Journal of Housing Economics , 1998, pages 93-120. There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hhs:uunewp:1997_004 Access Statistics for this paper More papers in Working Paper Series from Uppsala University, Department of Economics Department of Economics, Uppsala University, P. O. Box 513, SE-751 20 Uppsala, Sweden. Contact information at EDIRC. |
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