Speculative Bubbles in U.K. House Prices: Some New Evidence.

In this article, we test the view, widely held among both academics and practitioners, that speculative bubbles have characterized the time series behavior of U.K. house prices in recent times. We motivate our empirical analysis using a stylized overlapping-generations model which generates a housin...

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Publicado en:Southern Economic Journal Vol. 70; no. 4; pp. 777 - 796
Autores principales: Garino, Gaia, Sarno, Lucio
Formato: Artículo
Publicado: Southern Economic Association April 2004
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Speculative Bubbles in U.K. House Prices: Some New Evidence.
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          Garino, Gaia
          Sarno, Lucio
      su:
        Housing
        Mathematical models
        Home prices
        United Kingdom
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        subj:
          United Kingdom
          Housing
          Mathematical models
          Home prices
      ab: In this article, we test the view, widely held among both academics and practitioners, that speculative bubbles have characterized the time series behavior of U.K. house prices in recent times. We motivate our empirical analysis using a stylized overlapping-generations model which generates a housing demand function of the form assumed by a large literature, illustrating how rational bubbles may arise as a solution to the house price determination equation. Employing two recently developed econometric techniques specifically designed to test for rational bubbles, we then provide empirical evidence for the existence of bubbles in U.K. house prices over the sample period 1983-2002. Reprinted by permission of the publisher.
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    language: English
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