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Ten Propositions in UK Housing Macroeconomics: An Overview of the 1980s and Early 1990s

Department of Economics, Faculty of Urban and Regional Studies, University of Reading, P.O. Box 219, Whiteknights, Reading, RG6 2AW, UK

During the last ten years, macroeconomists have increasingly come to realise that there are important interactions between housing and the wider economy. In some cases, this realisation has come too late to avoid the severe oscillations in the economy that have characterised the period since the mid-1980s. This paper uses a macroeconometric model, specifically designed to capture the interactions, in order to reflect on the experience of the 1980s and early 1990s and to draw theoretical, empirical and policy conclusions in terms of ten propositions.

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