Are we living in a bubble?

Loading...
Thumbnail Image

URL

Journal Title

Journal ISSN

Volume Title

School of Business | Bachelor's thesis
Electronic archive copy is available locally at the Harald Herlin Learning Centre. The staff of Aalto University has access to the electronic bachelor's theses by logging into Aaltodoc with their personal Aalto user ID. Read more about the availability of the bachelor's theses.

Date

Major/Subject

Mcode

Degree programme

Language

en

Pages

30

Series

Abstract

Housing prices in Helsinki metropolitan area have risen rapidly ever since the mid-nineties. This has led to speculation on housing being overvalued in Helsinki metropolitan area. Some even fear that we are living in a housing bubble that is about to burst. In this paper I studied whether we have a housing bubble in Helsinki metropolitan area. I investigated this by testing if fundamental factors, such as income and lending rate, justify the increase in housing prices. This was done with a cointegration analysis. Based on my analysis housing prices reflect the fundamentals, meaning that we do not have a housing bubble in Helsinki metropolitan area.

Description

Thesis advisor

Lof, Matthijs

Other note

Citation