Johannes Stroebel, Matteo Maggiori, Stefano Giglio, 14 June 2014

The existence of house-price bubbles and market efficiency are among the fundamental debates in finance, especially popular in current years. This column describes a recent test of one of the prominent models of bubbles, exploiting a unique feature of the housing markets in the UK and in Singapore. The results show that no infinitely lived bubble was present in these markets.


CEPR Policy Research