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Paper eres2015_295:
The Price-Turnover Relationship in European Housing Markets

id eres2015_295
authors Francke, Marc
year 2015
title The Price-Turnover Relationship in European Housing Markets
source 22nd Annual European Real Estate Society Conference in Istanbul, Turkey
summary This paper examines what determines the relation between prices and turnover in European housing markets. We estimate this relationship using a panel vector error correction model. We focus on the role of path dependency, direct feedback, mortgage market indicators, and several other macro-economic indicators. We find that there is particularly strong direct feedback between prices and turnover. Also the mortgage market indicators, such as the outstanding mortgage loans to GDP, play an important role. Prices, turnover, the outstanding mortgage balance to GDP, and the level of GDP are cointegrated. Those markets with the strongest feedback mechanism between prices and turnover are also those markets which are the most volatile.
keywords price-turnover relationship, credit constraints, nominal loss aversion, cointegration
series ERES:conference
type paper session
content file.pdf (323,597 bytes)
discussion No discussions. Post discussion ...
session Housing Markets & Economics II
last changed 2015/07/08 18:06
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