In order to assess whether the steep increase of house prices in several industrial countries in the last ten years constitutes a house price bubble as often mentioned in the press and public debate we analyse the key fundamental determinants of residential house prices. We argue that the often...

Since Eugene Famaís seminal contribution in 1970 it is a hotly debated question whether and in how far financial markets are information efficient and what lessons should be drawn for investment strategies. By now it seems established that capital market efficiency in its strong form does not...