Working Paper no. 29, "The residential housing market in Iceland"
Working Paper no. 29, "The residential housing market in Iceland: Analysing the effects of the recent mortgage market restructuring" by Lúdvík Elíasson and Thórarinn G. Pétursson has been published. This paper estimates a simple model of the domestic housing market and analyses the effects of the recent restructuring of the domestic mortgage market on house prices and housing investment. The main result is that the structural change led to more than a 20% rise in house prices.