Open AccessResidential Housing Investment In Spain
Author(s) -
Stephan Kienle
Publication year - 2013
Publication title -
the international business and economic research journal/the international business and economics research journal
Language(s) - English
Resource type - Journals
eISSN - 2157-9393
pISSN - 1535-0754
DOI - 10.19030/iber.v12i12.8258
Subject(s) - constraint (computer aided design) , equity (law) , investment (military) , economics , term (time) , econometrics , microeconomics , financial economics , engineering , mechanical engineering , physics , quantum mechanics , politics , political science , law
Over the last decade, the Spanish housing market has gained a lot of attention due to its dynamics in house prices and residential investments. Our contribution provides a general framework based on the classical user cost approach. We take an equity constraint explicitly into account when modeling a long-term equilibrium. Against the background of theoretical implications we estimate a vector error correction model and find some evidence for the existence of such a financial constraint.