The interaction of actual and fundamental house prices: A general model with an application to Sweden

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Standard

The interaction of actual and fundamental house prices : A general model with an application to Sweden. / Sorensen, Peter Birch; Bergman, Michael.

I: Journal of Housing Economics, Bind 54, 101792, 12.2021.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Sorensen, PB & Bergman, M 2021, 'The interaction of actual and fundamental house prices: A general model with an application to Sweden', Journal of Housing Economics, bind 54, 101792. https://doi.org/10.1016/j.jhe.2021.101792

APA

Sorensen, P. B., & Bergman, M. (2021). The interaction of actual and fundamental house prices: A general model with an application to Sweden. Journal of Housing Economics, 54, [101792]. https://doi.org/10.1016/j.jhe.2021.101792

Vancouver

Sorensen PB, Bergman M. The interaction of actual and fundamental house prices: A general model with an application to Sweden. Journal of Housing Economics. 2021 dec.;54. 101792. https://doi.org/10.1016/j.jhe.2021.101792

Author

Sorensen, Peter Birch ; Bergman, Michael. / The interaction of actual and fundamental house prices : A general model with an application to Sweden. I: Journal of Housing Economics. 2021 ; Bind 54.

Bibtex

@article{38d67bc5ac9c4b0998a3c9df0f35553f,
title = "The interaction of actual and fundamental house prices: A general model with an application to Sweden",
abstract = "The paper presents a general method for estimating a country{\textquoteright}s level of fundamental house prices and its interaction with actual house prices. We set up a unified empirical model which can be used to analyze the time-series behavior of the fundamental house price and to test various hypotheses regarding its relation to the actual house price. Conditional forecasts from the model allow us to simulate policy experiments. To illustrate how the methods work, we apply it to data for Sweden. We find a tendency for actual house prices to converge on fundamental prices, albeit rather slowly. To achieve a significant fall in actual house prices it is necessary to increase the user cost substantially.",
keywords = "Fundamental house prices, house price dynamics, Housing bubbles",
author = "Sorensen, {Peter Birch} and Michael Bergman",
year = "2021",
month = dec,
doi = "10.1016/j.jhe.2021.101792",
language = "English",
volume = "54",
journal = "Journal of Housing Economics",
issn = "1051-1377",
publisher = "Academic Press",

}

RIS

TY - JOUR

T1 - The interaction of actual and fundamental house prices

T2 - A general model with an application to Sweden

AU - Sorensen, Peter Birch

AU - Bergman, Michael

PY - 2021/12

Y1 - 2021/12

N2 - The paper presents a general method for estimating a country’s level of fundamental house prices and its interaction with actual house prices. We set up a unified empirical model which can be used to analyze the time-series behavior of the fundamental house price and to test various hypotheses regarding its relation to the actual house price. Conditional forecasts from the model allow us to simulate policy experiments. To illustrate how the methods work, we apply it to data for Sweden. We find a tendency for actual house prices to converge on fundamental prices, albeit rather slowly. To achieve a significant fall in actual house prices it is necessary to increase the user cost substantially.

AB - The paper presents a general method for estimating a country’s level of fundamental house prices and its interaction with actual house prices. We set up a unified empirical model which can be used to analyze the time-series behavior of the fundamental house price and to test various hypotheses regarding its relation to the actual house price. Conditional forecasts from the model allow us to simulate policy experiments. To illustrate how the methods work, we apply it to data for Sweden. We find a tendency for actual house prices to converge on fundamental prices, albeit rather slowly. To achieve a significant fall in actual house prices it is necessary to increase the user cost substantially.

KW - Fundamental house prices

KW - house price dynamics

KW - Housing bubbles

U2 - 10.1016/j.jhe.2021.101792

DO - 10.1016/j.jhe.2021.101792

M3 - Journal article

VL - 54

JO - Journal of Housing Economics

JF - Journal of Housing Economics

SN - 1051-1377

M1 - 101792

ER -

ID: 302915116