House Price Dynamics and Bank Herding: European Empirical Evidence

• Type: Article in International Scientific Journal
• Date: 2020

Authors

Martins, AM (Author) Other; Serra, AP (Author) FEP; Francisco Vitorino Martins (Author) FEP; Stevenson, S (Author) Other

Journal

Title: JOURNAL OF REAL ESTATE RESEARCH

Vol. 42

Pages: 365-396

ISSN: 0896-5803

Indexing

ISI Web of Knowledge - 3 Citations

Scopus - 3 Citations

Other information

Authenticus ID: P-00T-E15

DOI: 10.1080/08965803.2020.1840897

Abstract (EN): This paper examines house price dynamics, bank herding behavior, and the linkages between them. The analysis presented indicates that prior to the financial crisis, non-fundamental factors played a significant role in several European countries, including the United Kingdom, Spain, Denmark, Sweden, and Ireland. We also provide evidence indicative of herding behavior in the residential mortgage loan market. Finally, Granger causality tests show that non-fundamentally justified price dynamics contributed to the herding displayed by lenders and that this behavior was a response by banks as a group to common information on residential property assets.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 32