This study looks at the characteristics and determinants of booms and busts in housing prices for a sample of eighteen industrialised countries over the period 1980–2007. From an historical perspective, we find that recent housingbooms have been amongst the longest in the past four decades. Estimates of a Multinomial Probit model suggest that domestic credit and interest rates have a significant influence on the probability of booms and busts occurring. Moreover, international liquidity plays a significant role for the occurrence of housingbooms and—in conjunction with banking crises—for busts. We also find that the deregulation of financial markets has strongly magnified the impact of the domestic financial sector on the occurrence of booms.

Agnello, L., Shucknecht, L. (2011). Booms and busts in housing markets: determinants and implications. JOURNAL OF HOUSING ECONOMICS, 20(3), 171-190 [10.1016/j.jhe.2011.04.001].

Booms and busts in housing markets: determinants and implications

AGNELLO, Luca;
2011-01-01

Abstract

This study looks at the characteristics and determinants of booms and busts in housing prices for a sample of eighteen industrialised countries over the period 1980–2007. From an historical perspective, we find that recent housingbooms have been amongst the longest in the past four decades. Estimates of a Multinomial Probit model suggest that domestic credit and interest rates have a significant influence on the probability of booms and busts occurring. Moreover, international liquidity plays a significant role for the occurrence of housingbooms and—in conjunction with banking crises—for busts. We also find that the deregulation of financial markets has strongly magnified the impact of the domestic financial sector on the occurrence of booms.
2011
Settore SECS-P/02 Politica Economica
Agnello, L., Shucknecht, L. (2011). Booms and busts in housing markets: determinants and implications. JOURNAL OF HOUSING ECONOMICS, 20(3), 171-190 [10.1016/j.jhe.2011.04.001].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10447/65934
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