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Determinants Of Fluctuations In House-Building In Denmark 1880–1940

  • E. Hoffmeyer
  • K. Mordhorst
Part of the International Economic Association Series book series (IEA)

Abstract

During the inter-war period it became gradually accepted by most Danish economists and politicians that house-building is very sensitive to short-run variations in the long-term interest rate. The introduction of this view was probably mainly due to two circumstances: one was the heavy building crisis in 1907–8 accompanied by bank failures and shortage of money; another was the impact of Wicksell’s theories on Danish economists. Since then it has been accepted almost as a matter of fact that house-building must be influenced strongly by short-term fluctuations in the long-term interest rate. Reference is mostly made to theoretical considerations—investment calculations in durable equipment—and rarely to thorough empirical investigations.

Keywords

Married Couple Housing Stock Vacancy Rate Housing Shortage Credit Mortgage 
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Notes

  1. 1.
    J. B. D. Derksen, ‘Long Cycles in Residential Building: An Explanation’, Econometrica, April 1940. S. J. Maisel, ‘A Theory of Fluctuations in Residential Construction Starts’, American Economic Review, June 1963. R. F. Muth, ‘The Demand for Non-Farm Housing’, in The Demand for Durable Goods, ed. A. C. Harberger, Chicago, 1960.Google Scholar

Copyright information

© International Economic Association 1967

Authors and Affiliations

  • E. Hoffmeyer
    • 1
  • K. Mordhorst
    • 1
  1. 1.Danmarks National bankCopenhagenDenmark

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