Booms and busts in housing markets

Abstract

The study by Agnello and Schuknecht (2009) analyses housing market booms and busts in 18 industrialised countries over the period from 1970 to 2007. The sample includes Australia, Belgium, Canada, Denmark, Finland, France, Germany, Italy, Ireland, Japan, the Netherlands, New Zealand, Norway, Spain, Sweden, Switzerland, the United Kingdom and the United States. After identifying boom and bust episodes as major and persistent deviations of real housing price series from long-term trends, the authors estimate a panel probit model to examine what the main determinants of booms and busts are, and to what extent they impact on the probability of such events