No-Bubble Condition: Model-Free Tests in Housing Markets

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No-bubble Condition: Model-free Tests in Housing Markets by Stefano Giglio,

We test for the existence of housing bubbles associated with a failure of the transversality condition that requires the present value of payments occurring infinitely far in the future to be zero. The most prominent such bubble is the classic rational bubble. We study housing markets in the United Kingdom and Singapore, where residential property ownership takes the form of either leaseholds o...

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Supplement to “no-bubble Condition: Model-free Tests in Housing Markets”: Online Appendix

IN THIS SUPPLEMENTAL APPENDIX, we provide additional information and results. Appendix A.1 provides more details on the data sources used in this paper. Appendix A.2 reviews and implements existing time-series tests for classic rational bubbles. Appendix A.3 reviews the institutional framework that regulates the relationship between leaseholders and freeholders in the U.K., focusing on characte...

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ژورنال

عنوان ژورنال: Econometrica

سال: 2016

ISSN: 0012-9682

DOI: 10.3982/ecta13447