ABSTRACT
The price of housing is an important economic variable, both at the micro and the macro level. For owner occupiers the house is usually the most important asset in their wealth portfolio and changes in house prices can have important consequences for their total wealth position. Related to this is the importance of house price changes for the macro economy: house prices are often regarded as an important determinant of consumption (see Campbell ampentity Cocco, 2005, and Case et al., 2005, for recent contributions). Therefore, it is of some interest to study the determination of house prices.
