scholarly journals Assessing House Prices in Germany: Evidence from an Estimated Stock-Flow Model Using Regional Data

2013 ◽  
Author(s):  
Florian Kajuth ◽  
Thomas Knetsch ◽  
Nicolas Pinkwart
Keyword(s):  
Flow Model ◽  
House Prices ◽  
Regional Data ◽  
Stock Flow

scholarly journals International Real Estate Review

2011 ◽  
Vol 14 (2) ◽  
pp. 159-183
Author(s):  
Oliver Bischoff ◽  
Keyword(s):  
Household Income ◽  
Birth Rate ◽  
Flow Model ◽  
Positive Impact ◽  
Data Set ◽  
Rental Market ◽  
East German ◽  
Vacancy Rates ◽  
Stock Flow

We apply the stock flow model for the German residential rental market using a data set that includes the overwhelming majority of nomenclature of territorial units for statistics (NUTS) 3 regions for the 2004-2007 period. Aside from proving conditional rental price convergence, we have detected a turnaround in vacancy stocks between the short and the long term. While East German counties and West German independent cities currently exhibit the highest and lowest vacancy rates, respectively, the opposite holds true at equilibrium. Leaning on theoretical suggestions, landlords in well-developed areas have incentives to hold onto vacancies in view of future rent increases. Our results support this idea, which demonstrates the significantly positive impact of household income and net birth rate on the natural vacancy rate.

scholarly journals International Real Estate Review

2001 ◽  
Vol 4 (1) ◽  
pp. 80-94
Author(s):  
Ching-Chun Hua ◽  
◽  
Chin-Oh Chang ◽  
Chengho Hsieh ◽  
◽  
...  
Keyword(s):  
Housing Market ◽  
Flow Model ◽  
Housing Stock ◽  
Empirical Models ◽  
Sales Price ◽  
Long Run ◽  
Volume Relationship ◽  
Stock Flow ◽  
Existing Housing ◽  
The Relationship

In Taiwan, the housing market can be separated into the existing housing market and the pre-sales market. The existing market can be regarded as the stock market, and the pre-sales market the flow market. However, some unique characteristics exist in the Taiwan market. Based on these characteristics, we modified the conventional housing stock-flow model to describe the price -volume relationship between the existing and pre-sales markets. Empirical models are constructed to test the relationship. Major findings are: 1) both the pre-sales price and the existing price converge to the long-run equilibrium; however, the pre-sales price adjusts faster than the existing price, implying that the existence of the pre-sales system improves market efficiency; and 2) housing supply from the pre-sales market responds to the housing market surpluses/shortages.

scholarly journals The effect of house prices on business start-ups: A review and analysis using Swedish regional data

REGION ◽  
2017 ◽  
Vol 4 (1) ◽  
pp. 1 ◽  
Author(s):  
Björn Berggren ◽  
Andreas Fili ◽  
Mats Håkan Wilhelmsson
Keyword(s):  
Regression Analysis ◽  
Information Asymmetry ◽  
House Prices ◽  
Regional Data ◽  
Access To Finance ◽  
The Core ◽  
Early Stages ◽  
Body Of Knowledge ◽  
And Control ◽  
Start Ups

Entrepreneurs are at the core of economic development in that they start new businesses or make existing firms grow. To fulfill this important role, entrepreneurs need access to finance. Owing to information asymmetry and the relatively high risk associated with business start-ups, many financiers shy away from engaging in relationships with firms during the early stages of their development. Based on the existing body of knowledge on the financing of entrepreneurship, we know that insider finance is of paramount importance in the early stages of firms’ development. We expand this knowledge base by analyzing the influence of house prices on business start-ups across municipalities in Sweden. In our analysis, we include data from all municipalities in Sweden. Our data on house prices and control variables are collected in period one, and our data on the frequency of start-ups are collected in period two. We find that rising house prices in a municipality lead to a higher frequency of start-ups. In our regression analysis, we find that a 1% increase in house prices leads to a 0.14% increase in start-ups. Our findings are in line with the limited international research that has been previously conducted, and for this reason, they could be seen as a vital addition to the existing body of knowledge within the area of entrepreneurship and regional development. 

scholarly journals Retrading, production, and asset market performance

2015 ◽  
Vol 112 (47) ◽  
pp. 14557-14562 ◽  
Author(s):  
Steven D. Gjerstad ◽  
David Porter ◽  
Vernon L. Smith ◽  
Abel Winn
Keyword(s):  
Effective Treatment ◽  
Laboratory Experiments ◽  
Flow Model ◽  
Asset Markets ◽  
Asset Market ◽  
Price Bubbles ◽  
Equilibrium Prices ◽  
Consumption Values ◽  
Market Experiments ◽  
Stock Flow

Prior studies have shown that traders quickly converge to the price–quantity equilibrium in markets for goods that are immediately consumed, but they produce speculative price bubbles in resalable asset markets. We present a stock-flow model of durable assets in which the existing stock of assets is subject to depreciation and producers may produce additional units of the asset. In our laboratory experiments inexperienced consumers who can resell their units disregard the consumption value of the assets and compete vigorously with producers, depressing prices and production. Consumers who have first participated in experiments without resale learn to heed their consumption values and, when they are given the option to resell, trade at equilibrium prices. Reproducibility is therefore the most natural and most effective treatment for suppression of bubbles in asset market experiments.

scholarly journals HOUSING MARKETS, EXPECTATION FORMATION AND INTEREST RATES

2020 ◽  
pp. 1-42
Author(s):  
Carolin Martin ◽  
Noemi Schmitt ◽  
Frank Westerhoff
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Housing Market ◽  
House Prices ◽  
Housing Markets ◽  
Central Banks ◽  
Market Model ◽  
Expectation Formation ◽  
The Interest Rate ◽  
Stock Flow

Based on a behavioral stock-flow housing market model in which the expectation formation behavior of boundedly rational and heterogeneous investors may generate endogenous boom-bust cycles, we explore whether central banks can stabilize housing markets via the interest rate. Using a mix of analytical and numerical tools, we find that the ability of central banks to tame housing markets by increasing the base (target) interest rate, thereby softening the demand pressure on house prices, is rather limited. However, central banks can greatly improve the stability of housing markets by dynamically adjusting the interest rate with respect to mispricing in the housing market.

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