Diagnosing housing fever with an econometric thermometer

• Published in: Journal of economic surveys Vol. 37; no. 1; pp. 159 - 186
• Main Authors: Shi, Shuping, Phillips, Peter C.B.
• Format: Journal Article
• Language: English
• Published: Oxford Blackwell Publishing Ltd 01.02.2023
• Subjects: Australia housing markets; C13; C58; Capital; Econometrics; Economic crisis; Endogenous; explosive; fundamentals; Housing; housing bubbles; Housing market; IVX; JEL Classification Codes: C12; Literature reviews; Measurement; Medical diagnosis; periodically collapsing; Prices; unobservable

Housing fever is a popular term to describe an overheated housing market or housing price bubble. Like other financial asset bubbles, housing fever can inflict harm on the real economy, as indeed the U.S. housing bubble did in the period following 2006 leading up to the general financial crisis and...