Electronic Theses and Dissertations

Date of Award

2011

Document Type

Thesis

Degree Name

M.A. in Economics

First Advisor

Walter J. Mayer

Second Advisor

Ali Gungorayadinoglu

Third Advisor

Nilufer Ozdemir

Relational Format

dissertation/thesis

Abstract

This study evaluates the existence of asset bubbles in Florida metropolitan statistical areas during 2000–2010. Estimation occurs in two stages with the first being the estimated fundamental price of housing using a fixed effects estimator. Once the fundamental price of housing is determined an error correction model of housing prices is estimated to evaluate the degrees of serial correlation and mean reversion existing in the sampled geographic areas. Serial correlation and mean reversion are then interacted with the hypothesized effects of information costs, supply costs, and expectations of future price behavior to uncover variation in the dynamic response of housing. The results suggest that fluctuations in home sale transactions volume, construction costs, and expectations of future price behavior interact with market dynamics.

Included in

Economics Commons

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