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Effects of inflation on the housing market under rational expectations

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Male, Sarah E.(Sarah Elizabeth) (1989) Effects of inflation on the housing market under rational expectations. Research Master thesis, University of Tasmania.

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Abstract

In this study an equilibrium asset-market model of the housing
market is developed. The model is used to examine the effects of
inflation on the Australian housing market under the maintained
hypothesis of rational expectations. It provides a theoretical basis
for empirically testing several hypotheses about the effects of
inflation, however, the scarcity of relevant and reliable data is an
important limitation, and the results are of consequential
significance only.
Two streams of literature that have emerged from
American research in this area are drawn together in the present
study and, to that end, the theoretical model presented herein serves
as a useful extension and adaptation of previous models.
Specifically, attention is directed to the influence of
inflation on current housing demand decisions through: the
characteristics of the mortgage instrument; the institutional
features of the mortgage market; and the user-cost of home
ownership.
Generation of the testable hypotheses necessiates a brief
discourse on the evidence of a 'Fisher effect' in the determination of
nominal interest rates in Australia. Some simple experiments are
performed in an attempt to provide empirical evidence, consistent
with previous cited research, of the absence of such an effect.

Item Type: Thesis (Research Master)
Keywords: Housing, Housing
Copyright Holders: The Author
Copyright Information:

Copyright 1989 the Author - The University is continuing to endeavour to trace the copyright
owner(s) and in the meantime this item has been reproduced here in good faith. We
would be pleased to hear from the copyright owner(s).

Additional Information:

Thesis (M.A.)--University of Tasmania, 1990. Bibliography: leaves 129-135

Date Deposited: 19 Dec 2014 02:32
Last Modified: 04 Aug 2017 03:41
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