Overvaluation in Australian housing and equity markets: wealth effects or monetary policy?
A structural vector autoregression model is used to identify overvaluation in house prices in Australia from 2002 to 2008. An important feature is the development of a housing sector where long-run restrictions are derived from theory to identify housing demand and supply shocks. The results show strong evidence of overvaluation in real house prices, reaching a peak of just over 15 per cent by the end of 2003. Factors driving overvaluation are housing demand shocks before 2006 and post-2006...[Show more]
|Collections||ANU Research Publications|
|Source:||Economic Record 86.275 (2010): 465-485|
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