Working paper: Overoptimism and house price bubbles

Authors Kuchler, Andreas; Abildgren, Kim; Hansen, Niels Lynggård
Subject Danish Economy; Economic activity and employment; Housing finance; household balance sheets; Business enterprises and households
Type Working paper
Year 2016
Published 28 October 2016
Abstract icon This paper explores the significance of overoptimism on house price developments in Denmark. The results indicate that house price developments historically have been partly driven by sentiments decoupled from underlying economic fundamentals, especially during strong house price booms.