Exuberance in the U.K. Regional Housing Markets
Ivan Paya (),
David Peel and
Alisa Yevgenyevna Yusupova
No 168117137, Working Papers from Lancaster University Management School, Economics Department
We combine the estimation of a structural model with inference based on recently developed recursive unit root tests to analyse the behaviour of regional real estate markets in the U.K. over the last four decades. We find two episodes, the late 1980s and the early and mid-2000s, when all regional house prices experienced explosive dynamics above and beyond factors such as housing supply relative to demographics, income, regional spillovers and credit availability. This is the first econometric analysis to provide evidence that would endorse the view that â€˜bubblesâ€™, with a particular spatial pattern, are a feature of UK regional housing markets.
Keywords: Regional house prices; Structural housing model; Cointegration; Generalised supremum ADF; Speculative bubbles (search for similar items in EconPapers)
JEL-codes: C22 G12 R30 R31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur, nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://www.lancaster.ac.uk/media/lancaster-univers ... casterWP2017_012.pdf (application/pdf)
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:lan:wpaper:168117137
Access Statistics for this paper
More papers in Working Papers from Lancaster University Management School, Economics Department Contact information at EDIRC.
Bibliographic data for series maintained by Giorgio Motta ().