01812cas a2200253 a 4500 AALejournalIMF006932 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455211722 1018-5941 BD-DhAAL BD-DhAAL Wang, Shengzu. What Drives House Prices in Australia? : A+L4584 Cross-Country Approach / Shengzu Wang, Patrizia Tumbarello. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (24 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper analyzes the factors driving house prices in Australia from a cross-country perspective using several approaches. It uses a cointegration technique to estimate the long-run equilibrium house prices in Australia, New Zealand, and Canada and assesses the extent of a possible disequilibrium. It also presents an event analysis to shed some light on the link between house prices, capital inflows and the terms of trade. The econometric analysis suggests an overvaluation of 5-10 percent depending on the model specification. Event analysis indicates that terms of trade shocks were associated with larger increases in house prices in Australia, than in the case of strong capital inflow episodes. Mode of access: Internet Tumbarello, Patrizia. IMF Working Papers; Working Paper ; No. 2010/291 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/291/001.2010.issue-291-en.xml IMF e-Library