Modeling the Housing Market in OECD Countries

Philip Arestis and Ana Rosa Gonzalez

Economics Working Paper Archive from Levy Economics Institute

Abstract: Recent episodes of housing bubbles, which occurred in several economies after the burst of the United States housing market, suggest studying the evolution of housing prices from a global perspective. We utilize a theoretical model for the purposes of this contribution, which identifies the main drivers of housing price appreciation—for example, income, residential investment, financial elements, fiscal policy, and demographics. In the second stage of our analysis, we test our theoretical hypothesis by means of a sample of 18 Organisation for Economic Co-operation and Development (OECD) countries from 1970 to 2011. We employ the vector error correction econometric technique in terms of our empirical analysis. This allows us to model the long-run equilibrium relationship and the short-run dynamics, which also helps to account for endogeneity and reverse-causality problems.

Keywords: Empirical Modeling; Housing Market; Vector Error Correction Modeling; OECD Countries (search for similar items in EconPapers)
JEL-codes: C22 R31 (search for similar items in EconPapers)
Date: 2013-05
New Economics Papers: this item is included in nep-eec, nep-pke and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.levyinstitute.org/pubs/wp_764.pdf (application/pdf)

Related works:
Journal Article: Modelling the housing market in OECD countries (2014)
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: https://EconPapers.repec.org/RePEc:lev:wrkpap:wp_764

Access Statistics for this paper

More papers in Economics Working Paper Archive from Levy Economics Institute
Bibliographic data for series maintained by Elizabeth Dunn ( this e-mail address is bad, please contact ).