Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/36660
Authors: 
Dümmler, Tobias
Kienle, Stephan
Year of Publication: 
2010
Series/Report no.: 
Discussion Paper Series 1: Economic Studies 2010,12
Abstract: 
We develop a formula for user costs of housing on the basis of a neoclassical approach to housing investment which does not impose a perfect capital market assumption. We suggest that the definition for the user costs of housing should be extended by an additional term which mirrors the credit constraints a household would be faced with. This extension term consists of the inflation gap between consumer and house price inflation multiplied with an average loan-to-value ratio and the real house prices. The empirical relevance of our finding is confirmed by a VECM. A time series for the user costs of housing is calculated using this extended definition.
Subjects: 
Housing investments
user costs of housing
cointegration
JEL: 
C32
E13
E22
ISBN: 
978-3-86558-625-4
Document Type: 
Working Paper

Files in This Item:
File
Size
474.26 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.