The Q Theory and the Swedish Housing Market: An Empirical Test
2006 (English)In: Journal of real estate finance and economics, ISSN 0895-5638, E-ISSN 1573-045X, Vol. 33, no 4, 329-344 p.Article in journal (Refereed) Published
We argue that major changes in economic policy have resulted in a more market driven demand for housing investment in Sweden, due to policy changes at the end of the 1980s and the beginning of the 1990s. Tobin's transparent Q theory is the investment theory used. For the last period of the sample (1993-2003 quarterly data), our results indicate that there exists a high degree of correlation between the Q ratio and the (logarithm of) two different variables for housing investment. An error correction regression model, controlling for structural breaks, also indicates that a stable long-run relationship could be detected for the logarithm of building starts and the Q ratio between 1993-2003, but not between 1981-1992.
Place, publisher, year, edition, pages
2006. Vol. 33, no 4, 329-344 p.
Error correction model, Housing investment, Structural break, Tobin's Q
Economics and Business
IdentifiersURN: urn:nbn:se:uu:diva-20027DOI: 10.1007/s11146-006-0336-1ISI: 000242296500002OAI: oai:DiVA.org:uu-20027DiVA: diva2:47799