Global Housing Cycles

Author/Editor:

Deniz O Igan ; Prakash Loungani

Publication Date:

August 1, 2012

Electronic Access:

Free Full Text (PDF file size is 1753 KB).Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Housing cycles and their impact on the financial system and the macroeconomy have become the center of attention following the global financial crisis. This paper documents the characteristics of housing cycles in a large set of countries, and examines the determinants of house price movements. Empirical analysis shows that house price dynamics are mostly driven by income and demographics but fluctuations in these fundamentals and credit conditions can create deviations from the implied equilibrium path. We conclude with a discussion of the macroeconomic implications of house price corrections.

Series:

Working Paper No. 12/217

Subject:

English

Publication Date:

August 1, 2012

ISBN/ISSN:

9781475505672/1018-5941

Stock No:

WPIEA2012217

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

56

Please address any questions about this title to publications@imf.org