Series: Working Papers. 1024.
Author: Luis J. Álvarez and Alberto Cabrero.
Topics: Business investment | Non-financial corporations, businesses | Quantitative methods | International Economy | Financial markets.
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Abstract
The aim of this paper is to characterize the cyclical properties of Spanish real and nominal housing related variables. Our three main results are: First, housing appears to lead the business cycle. Second, fl uctuation in home prices are positively related to those of residential investment, suggesting the dominant role of demand factors over supply ones. Third,there are interesting asymmetries in cyclical fl uctuations: contractions in GDP appear to be briefer than expansions.