Housing bubbles and the development of fundamentals
(2011) NEKM01 20111Department of Economics
- Abstract
- The issue of a housing bubble has been abundantly debated in Sweden. In this thesis, we investigate whether the current state of the Swedish housing market is comparable to the recent US ‘housing bubble’. Growth rates of house prices can vary greatly between different regions, which shows the need for analysis of house prices on a regional level. Using a panel consisting of 22 Swedish counties and a similar panel of 10 US metropolitan statistical areas, we examine a fundamental house price model of supply and demand to determine whether fundamentals can account for high growth in house prices. Our results suggest that Swedish house prices have outgrown fundamentals to some extent and that the US housing market may have reached equilibrium... (More)
- The issue of a housing bubble has been abundantly debated in Sweden. In this thesis, we investigate whether the current state of the Swedish housing market is comparable to the recent US ‘housing bubble’. Growth rates of house prices can vary greatly between different regions, which shows the need for analysis of house prices on a regional level. Using a panel consisting of 22 Swedish counties and a similar panel of 10 US metropolitan statistical areas, we examine a fundamental house price model of supply and demand to determine whether fundamentals can account for high growth in house prices. Our results suggest that Swedish house prices have outgrown fundamentals to some extent and that the US housing market may have reached equilibrium after several years of decline. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/2153732
- author
- Farestveit, Robert Eric LU
- supervisor
- organization
- alternative title
- Evidence from panel-data cointegration analysis of the Swedish and US housing markets
- course
- NEKM01 20111
- year
- 2011
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- panel data, cointegration, Sweden, USA, Housing bubble
- language
- English
- id
- 2153732
- date added to LUP
- 2011-09-27 09:15:37
- date last changed
- 2011-09-27 09:15:37
@misc{2153732, abstract = {{The issue of a housing bubble has been abundantly debated in Sweden. In this thesis, we investigate whether the current state of the Swedish housing market is comparable to the recent US ‘housing bubble’. Growth rates of house prices can vary greatly between different regions, which shows the need for analysis of house prices on a regional level. Using a panel consisting of 22 Swedish counties and a similar panel of 10 US metropolitan statistical areas, we examine a fundamental house price model of supply and demand to determine whether fundamentals can account for high growth in house prices. Our results suggest that Swedish house prices have outgrown fundamentals to some extent and that the US housing market may have reached equilibrium after several years of decline.}}, author = {{Farestveit, Robert Eric}}, language = {{eng}}, note = {{Student Paper}}, title = {{Housing bubbles and the development of fundamentals}}, year = {{2011}}, }