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House prices and long-term equilibrium in the regulated market of the Netherlands

Author

Listed:
  • Qi Tu
  • Jan de Haan
  • Peter Boelhouwer

Abstract

This paper establishes a simple affordability model that implicitly incorporates the major Dutch market features to elucidate long-run house prices under a regulatory environment. The results reveal a long-run relationship for house prices under strict regulations. The association among house prices, income, interest rates, and inflation is verified using an aggregated dataset. In the long-run, incomes and interest rates function as the two prime forces driving price dynamics, whereas the role of inflation is limited.

Suggested Citation

  • Qi Tu & Jan de Haan & Peter Boelhouwer, 2018. "House prices and long-term equilibrium in the regulated market of the Netherlands," Housing Studies, Taylor & Francis Journals, vol. 33(3), pages 408-432, April.
  • Handle: RePEc:taf:chosxx:v:33:y:2018:i:3:p:408-432
    DOI: 10.1080/02673037.2017.1346786
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    Cited by:

    1. Uwe Neumann & Lisa Taruttis, 2022. "Sorting in an urban housing market—is there a response to demographic change?," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 42(2), pages 111-139, August.
    2. Konstantin A. Kholodilin & Sebastian Kohl & Florian Müller, 2023. "Government-Made House Price Bubbles? Austerity, Homeownership, Rental, and Credit Liberalization Policies and the “Irrational Exuberance” on Housing Markets," Discussion Papers of DIW Berlin 2061, DIW Berlin, German Institute for Economic Research.

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