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Area and context of research:
The dissertation aims to find the determinants of house prices in the UK from1980 to 2008. It also seeks the relationship between house prices and
fundamental factors such as: real disposable income, interest rates,
代写ESSAY unemployment rates, and population, and to find out whether there was a pricebubble in the housing market during that period. Understanding the
determinants of house prices is very important as expenditure on new homes isa key component of consumption and aggregate demand and the house is themajor asset for most households. Collapse in house markets may lead toeconomic crisis as has just happened in the USA. There are many previousstudies which have tried to explain the relationship between house prices andfundamental factors in many countries such as: the USA, Central and EasternEurope, Australia. They found that some fundamental factors have significantimpact on house prices whilst some do not. Moreover, the sign and significanceof the relationship would be different depending on country, method, economiccircumstance and period of time. This dissertation tries to explore the factorsthat affect UK house prices, the significance and the sign of their relationship in
the period 1980-2008.
Literature review:Gert, B. and Mihaljek, D. (2007) Determinants of House Prices in Centraland Eastern Europe. Comparative Economic Studies. vol. 49, iss. 3, pp 367-This study, which has the same main goal as my dissertation, used thequantitative method to find the relationship between house prices andfundamental factors such as: disposable income, interest rates, housing credit,demographic factors and financial institution, housing quality. The studysuggested that house prices are modelled by the basic theory of demand andsupply. The key factors that determine the demand for housing are house prices,disposable income, demographic and labour market factors, the expected rate of
return on housing, housing quality and other demand shifters. Financial
regulation and growth of bank credit also play a role in affecting house prices,which was reflected by a housing boom in the late 1980s in the period offinancial liberalisation in the UK. On the other hand, supply of housing is afunction of house price, as is the real cost of construction. From these twoequations, the function of house prices will be detectible. However, the articlesuggests that house prices fluctuate significantly due to the variation of demandand supply side factors and key elasticities tend to be higher in small countriesthan in large ones. In order to find the relationship between house prices andfundamental factors, the study created a specific equation which explains the
relationship between real house prices and real interest rates and real
disposable income. Then, one by one, it added other variables which representremaining fundamental factors to avoid muliticollinearity. Income, housing
credit, population, labour force, real wage, and deregulation in housing financialinstitutions have a positive relationship with house prices whilst interest rates,unemployment, equity price are negatively correlated with house price.
Abelson, P. et al (2005) Explaining house prices in Australia: 1970-2003.
The Economic record. vol. 81, iss. special, pp.96-103
This paper also focused on the factors affecting house prices, which is the sameas the objectives of my dissertation. This study focused on house prices inAu本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。