The Changing Relationship between UK Home Prices and Rents
|dc.contributor.author||Kim, Jan R.||ko|
|dc.identifier.citation||영미연구, v.32, pp.309 - 330||ko|
|dc.description.abstract||The present value models of house prices predict that house prices andrents are related via a stable price-to-rents ratio, as house prices areequal to the present discounted values of future rents. The prolongeddivergence of the UK house prices from rents since the mid-1990s hasput into question the stability of the price-rents relation. In this paper, wereexamine the changing relationship between house price and rents using aMarkov-switching error correction model, and we find two distinctregimes in the price-rents relation. In one regime, which is identifiedmainly in the pre-1988 era, the long-run equilibrium relationshipcorresponds to the prediction of the present value models, i.e., the stableprice-to-rents ratio. The other regime, prevailing since 1988 forward,also involves a stationary price-rents relation. As such, this regime is notcharacterized with speculative bubbles. However, the long-run relation inthis regime is difficult to explain by the present value models, and theidentified regime period exhibits a long swing in the price-rents ratio.||ko|
|dc.title||The Changing Relationship between UK Home Prices and Rents||ko|
|dc.title.alternative||영국 주택시장내 매매가-월세 비율 분석||ko|
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