Importance of Demographics for Housing in the OECD Economies

22 Pages Posted: 10 Jan 2017  

Philip Arestis

University of Cambridge - Department of Land Economy; Universidad del País Vasco (UPV/EHU)

Ana Rosa Gonzalez‐Martinez

Cambridge Econometrics

Date Written: January 2017

Abstract

The aim of this contribution is to study the role of demographics in the explanation of house prices in the last few decades. Special attention is paid to the role, which has been played by three groups of population that have different necessities in terms of the amount of housing services that they wish to consume: (a) population aged between 25 and 44 years old; (b) population aged between 45 and 64 years old; and (c) retirees. Following our discussion of recent trends in demographics and relevant stylized facts, the construction of a theoretical framework ensues; finally we provide empirical evidence in the case of 17 OECD economies over the period 1970–2013, discuss it in relation to our theoretical framework before we summarize and conclude.

Keywords: cointegration, demographics, house prices, OECD economies

JEL Classification: C22, R31

Suggested Citation

Arestis, Philip and Gonzalez‐Martinez, Ana Rosa, Importance of Demographics for Housing in the OECD Economies (January 2017). Bulletin of Economic Research, Vol. 69, Issue 1, pp. 1-22, 2017. Available at SSRN: https://ssrn.com/abstract=2896439 or http://dx.doi.org/10.1111/boer.12072

Philip Arestis (Contact Author)

University of Cambridge - Department of Land Economy ( email )

19 Silver Street
Cambridge, CB3 9EP
United Kingdom

Universidad del País Vasco (UPV/EHU)

Barrio Sarriena s/n
Leioa, Bizkaia 48940
Spain

Ana Rosa Gonzalez‐Martinez

Cambridge Econometrics

Reuben House
Covent Garden
Cambridge, CB1 2HT
United Kingdom

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