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The Housing Market in the United Kingdom: Effects of House Price Volatility on Households
Author(s) -
Chandler Daniel,
Disney Richard
Publication year - 2014
Publication title -
fiscal studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.63
H-Index - 40
eISSN - 1475-5890
pISSN - 0143-5671
DOI - 10.1111/j.1475-5890.2014.12034.x
Subject(s) - economics , volatility (finance) , house price , consumption (sociology) , monetary economics , lower house , labour economics , macroeconomics , financial economics , social science , parliament , sociology , politics , political science , law
This paper describes the economics of the housing market and explains why house prices are likely to be more volatile than prices in other markets. It illustrates the volatility of house prices relative to some other key economic variables in the UK. The paper then considers the implications of variability in house prices for household behaviour, surveying a number of studies for the UK and elsewhere on the effects of house price volatility on consumption spending, indebtedness, labour supply, and entry to and exit from the homeownership market.