Template-Type: ReDIF-Paper 1.0
Author-Name: Efthymios Pavlidis
Author-Name-First: Efthymios
Author-Name-Last: Pavlidis
Author-Name: Ivan Paya
Author-Name-First: Ivan
Author-Name-Last: Paya
Author-Name: David Alan Peel
Author-Name-First: David Alan
Author-Name-Last: Peel
Author-Name: Alisa Yevgenyevna Yusupova
Author-Name-First: Alisa Yevgenyevna
Author-Name-Last: Yusupova
Title: Exuberance in the U.K. Regional Housing Markets
Abstract: We combine the estimation of a structural model with inference based on recently developed recursive unit root tests to analyse the behaviour of regional real estate markets in the U.K. over the last four decades. We find two episodes, the late 1980s and the early and mid-2000s, when all regional house prices experienced explosive dynamics above and beyond factors such as housing supply relative to demographics, income, regional spillovers and credit availability. This is the first econometric analysis to provide evidence that would endorse the view that ‘bubbles’, with a particular spatial pattern, are a feature of UK regional housing markets.
Creation-Date: 2017
File-URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/LancasterWP2017_012.pdf
File-Format: application/pdf
Number: 168117137
Classification-JEL: C22, G12, R30, R31
Keywords: Regional house prices, Structural housing model, Cointegration, Generalised supremum ADF, Speculative bubbles
Handle: RePEc:lan:wpaper:168117137