3 ms·

I don’t understand how this explains the irrational nature of accommodation purchases. Just because economists do X does not make it relatable in the real world

• nabla9 7y ago
  I don't see how this article should explain what you want it to explain because it's not related to the subject at all. If you are not interested in national monetary policy policy and it's relation to aggregate house prices this article is not for you. They talk about aggregate house prices in national level and only there. Their asset pricing model seems to explain prices in in England and Wales much better than traditional dividend discount model. Real house prices for last 20 years be explained almost entirely by lower interest rates.
  • andy_ppp 7y ago
    Hmmm maybe you should buy a few bricks in many hundreds of houses and see how you get on living there?
    • tormeh 7y ago
      As in, buy shares in Vonovia? You can't live in those, but you could probably do worse as far as investments go.