ABSTRACT
In this chapter, we will examine several ways of measuring housing investment and comparing rates of housing investment between countries. We raise questions about the usefulness and reliability of various sets of housing investment data which might be used to make comparisons within the European Union. We discuss theories of housing investment and generate a number of relevant hypotheses. We consider various possible explanations for differences in investment levels, such as: differences in data compilation and the comparability of the statistics; the role of demographic and macroeconomic factors; and policy effects. In relation to demographic and macroeconomic factors, we present results of some econometric modelling. Finally, we provide a critique of the methodology, as well as an appraisal of the nature of alternative explanations, of differences in investment levels.
