Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/175496
Authors: 
Birch Sørensen, Peter
Bergman, U. Michael
Year of Publication: 
2016
Series/Report no.: 
EPRU Working Paper Series 2016-04
Abstract: 
The paper presents a general method for estimating a country's level of fundamental house prices and its interaction with actual house prices. We set up a unified empirical model which can be used to analyze the time-series behavior of the fundamental house price and to test various hypotheses regarding its relation to the actual house price. To illustrate how the method works, we apply it to data for Denmark and Sweden. We find a tendency for actual house prices to converge on fundamental prices, albeit rather slowly.
Subjects: 
fundamental house prices
house price dynamics
housing bubbles
JEL: 
R31
G12
C31
Document Type: 
Working Paper
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