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Investment pp 193-208 | Cite as

Residential investment: bubbles and crashes in the UK housing market, 1980–99

  • M. C. Baddeley

Abstract

The aim of this chapter is to show that the theoretical concepts presented in earlier chapters have applicability beyond business investment and can be applied to the investment decisions made by ordinary people buying new houses, i.e. residential investment. Understanding residential fixed investment is complicated by the fact that, unlike business fixed investment, housing investment combines the characteristics of production goods and consumption goods. Although residential investment does not augment future productive capacity and so does not, in itself, contribute to output and employment growth, its effects on the macroeconomy are far-reaching.

Keywords

House Price Housing Market User Cost Mortgage Market Building Society 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© M.C. Baddeley 2003

Authors and Affiliations

  • M. C. Baddeley
    • 1
  1. 1.Gonville and Caius CollegeCambridgeUK

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