publication . Article . Preprint . Other literature type . 2016

Icelandic boom and bust: immigration and the housing market

Lúðvík Elíasson;
Open Access
  • Published: 17 May 2016 Journal: Housing Studies, volume 32, pages 35-59 (issn: 0267-3037, eissn: 1466-1810, Copyright policy)
  • Publisher: Informa UK Limited
Abstract
Possible explanations for the rapid increase in house prices and housing investment in Iceland between 2004 and 2007 and the subsequent market crash are studied. The boom was driven in part by banking liberalisation, international financial conditions, and domestic policies. A simple demand and supply model, based on the study by Elíasson and Pétursson (2009), is fitted to data through the recent boom-bust period. The model is remarkably robust through the cycle despite its unprecedented amplitude. However, it does not capture fully the turbulence in housing market data for the period since 2003. Different methods to account for the rapid rise in house prices an...
Subjects
free text keywords: Environmental Science (miscellaneous), Sociology and Political Science, Urban Studies, Bust, Supply and demand, Immigration, media_common.quotation_subject, media_common, Economics, Net migration rate, Price equation, Monetary economics, Labour economics, Dummy variable, Sudden stop, Boom
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