The contribution of this paper is to revisit the Early Warning System (EWS) literature by analysing selected episodes of financial market crisis, i.e. those preceded by a spell of credit and real estate expansions. The aim is to disentangle instances when this constitutes a natural phenomenon...

In the long term, real estate in Germany and the USA delivers high returns of 5% to 8% per year. However, the path to these average yields differs greatly: total returns on the German real estate markets tend to develop similarly to the gross domestic product with only slight fluctuations. The...

The current interest rate level provides hardly any returns on financial investments. Conversely, it offers debtors the opportunity to secure very favorable conditions for borrowing. Accordingly, the aim of this research is to show the effects of low interest rates on the demand behavior of...

To promote the financial stability, there is a need for an early warning system to signal the formation of asset price misalignments. This research provides two novel methods to accomplish this task. Results in this research shows that the conventional unit root tests in modified forms can be...