This paper elaborates a Spatial Autoregressive and Spatial Error Model (SAR-SE Model) to investigate the Italian house price dynamics. House prices in real terms have been modelled for the period 1995-2008 in all the 103 Italian provinces along with affordability ratio, persistency term, some...

This paper elaborates a Spatial Autoregressive and Spatial Error Model (SAR-SE Model) to investigate the Italian house price dynamics. House prices in real terms have been modelled for the period 1995-2008 in all the 103 Italian provinces along with affordability ratio, persistency term, some...

Recently housing markets have played a crucial role in macroeconomic developments. Optimistic housing markets have contributed to sustained economic activity in most OECD countries during the first years of the 2000s. Nevertheless many markets overheated and the collapse of the US subprime...