House prices and business cycles are tightly linked: Annual real percentage change, OECD average

2021 ◽  
Keyword(s):  
Business Cycles ◽  
House Prices ◽  
Percentage Change

House prices and business cycles: The case of the UK

2015 ◽  
Vol 19 (2) ◽  
pp. 131-146 ◽  
Author(s):  
Jan R. Kim ◽  
Keunsuk Chung
Keyword(s):  
Business Cycles ◽  
House Prices ◽  
The Uk

LIBOR, base rate spreads and the UK housing market

2015 ◽  
Vol 8 (1) ◽  
pp. 118-134 ◽  
Author(s):  
Martin Hinch ◽  
Jim Berry ◽  
William McGreal ◽  
Terry Grissom
Keyword(s):  
Time Series ◽  
Interest Rates ◽  
House Prices ◽  
House Price ◽  
Base Rate ◽  
Percentage Change ◽  
Content Type ◽  
Change Models ◽  
The Uk ◽  
The Impact

Purpose – The purpose of this paper is to analyse how London Interbank Offered Rate Index (LIBOR) and the spread between LIBOR and the base rate of interest as set by the Bank of England (BoE) influences the variation in house prices in the UK. Design/methodology/approach – This paper uses monthly data over a long time series, since 1986, to investigate the relationships between house price and LIBOR. Data are drawn from several different sources to include housing, financial and macro-economic variables. The time series is sub-divided into a series of splines based on stages in the economic and property market cycle. Both value-based and percentage change models are developed. Findings – The results show that BoE base/LIBOR margin variable has a strong positive and significant effect on house price; however, the percentage change model infers a weaker and inverse relationship. The spline analysis re-emphasised the significance of the BoE base/LIBOR margin variable. Where variation between base rates and LIBOR is reduced, a significant positive effect can be observed in the average house price; however, where significant variation exists, the BoE base/LIBOR margin has little effect and LIBOR itself becomes a significant driver. Research limitations/implications – The results highlight that the predictive qualities of the BoE base/LIBOR margin, as the contribution of this margin to the explanation of house price, exceeds both the base rate and LIBOR variables individually. Also highlighted is the contribution of unemployment to the explanation of house price. In both the value and percentage change models, unemployment is shown as a negative and highly significant contributor. Originality/value – Previous papers have demonstrated the important linkage between house price and interest rates, the originality in this paper lies in examining the impact of LIBOR and the spreads between LIBOR and base rate as key variables influencing variation in UK house prices.

scholarly journals ASSESSMENT OF BUBBLES IN THE MALAYSIAN HOUSING MARKET

2017 ◽  
Vol 15 (3) ◽  
Author(s):  
Rohayu Ab. Majid ◽  
Rosli Said ◽  
Chong J.T.S
Keyword(s):  
Business Cycles ◽  
Housing Market ◽  
House Prices ◽  
Housing Affordability ◽  
Residential Property ◽  
Ratio Analysis ◽  
Housing Bubble ◽  
Property Market ◽  
Housing Bubbles ◽  
Year 2000

Property cycle and housing bubble have been a noteworthy subject of discussion since decades ago. The economic and business cycles have been closely associated with the property cycle as the economic and business factors have certain definite effects on the property market. At some point of the property cycle, the housing bubble will occur. The housing bubble is a trend of unreasonable increase of house prices where the increase is supported by factors that are not economics related. It causes the house prices to be intolerable in terms of housing affordability and the bursting of this housing bubble would lead to the crash of the property market. This paper focuses on using the economic indicators to identify the phases of the residential property cycle in Malaysia from the year 2000 to 2012. Having done so, housing bubbles were analysed using ratio analysis for the year 2012. The results show that housing bubble is yet to become a significant threat to our national property market as it only affects certain areas and housing types.

scholarly journals ASSESSMENT OF BUBBLES IN THE MALAYSIAN HOUSING MARKET

2017 ◽  
Vol 15 ◽  
Author(s):  
Rohayu Ab. Majid ◽  
Rosli Said ◽  
Chong J.T.S
Keyword(s):  
Business Cycles ◽  
Housing Market ◽  
House Prices ◽  
Housing Affordability ◽  
Residential Property ◽  
Ratio Analysis ◽  
Housing Bubble ◽  
Property Market ◽  
Housing Bubbles ◽  
Year 2000

Property cycle and housing bubble have been a noteworthy subject of discussion since decades ago. The economic and business cycles have been closely associated with the property cycle as the economic and business factors have certain definite effects on the property market. At some point of the property cycle, the housing bubble will occur. The housing bubble is a trend of unreasonable increase of house prices where the increase is supported by factors that are not economics related. It causes the house prices to be intolerable in terms of housing affordability and the bursting of this housing bubble would lead to the crash of the property market. This paper focuses on using the economic indicators to identify the phases of the residential property cycle in Malaysia from the year 2000 to 2012. Having done so, housing bubbles were analysed using ratio analysis for the year 2012. The results show that housing bubble is yet to become a significant threat to our national property market as it only affects certain areas and housing types.

Peculiarities of Modern Dynamics of the Global Economy

2010 ◽  
pp. 78-92 ◽  
Author(s):  
V. Klinov
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Business Cycles ◽  
Global Economy ◽  
Long Waves ◽  
Rapid Expansion ◽  
Business Taxation ◽  
Modern World ◽  
China And India ◽  
World Economic

Rates and factors of modern world economic growth and the consequences of rapid expansion of the economies of China and India are analyzed in the article. Modification of business cycles and long waves of economic development are evaluated. The need of reforming business taxation is demonstrated.

Institutions as the Ordering Factor and as the Destabilizing Force: New Institutional and Post Keynesian Perspectives

2006 ◽  
pp. 102-118 ◽  
Author(s):  
A. Skorobogatov
Keyword(s):  
Economic Policy ◽  
Business Cycles ◽  
Institutional Theory ◽  
Institutional Environment ◽  
Institutional Arrangements ◽  
Economic Stability ◽  
Forward Contracts

The paper is dedicated to the New Institutional and Post Keynesian perspectives on institutions and their relation to economic stability. Embeddedness, institutional environment, and institutional arrangements are considered. Within these institutions conventional expectations, the economic policy and forward contracts are analyzed. Upon these perspectives the author shows a contradictory relation between institutions and the order and develops an institutional theory of business cycles.

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