Modelling the housing markettheoretical and empirical analyses of some OECD countries, 1970-2011

Resum

The evolution of housing bubbles in teh main world economies and the severe consequences of their burst, motivate the study of those factors, which determine house prices, by paying special attention to those variables that are related to monetary and fiscal policies. Our analysis also accounts for the impact of demographics and the external sector in order to generalize a nationwide housing model, which explains the relationship among house-prices, real residential investment and bank credit. After developing our theoretical model, we proceed to test it in the case o f15 OECD economies over the period 1970-2011. We estimate our model in each country by means of cointegration techniques in order to analyse the different characteristics of the housing and the credit market in each country under investigation.