The 1985–95 Cycle in Real Estate Markets: Bubble or Shock?

  • Didier Cornuel
  • Francis Calcoen
Part of the Applied Econometrics Association Series book series (AEAS)


Over the 1985–95 period, the French real estate sector has probably undergone its most outstanding cycle. A similar phenomenon has been experienced by most industrialised countries. This cycle came forward as an explosion in prices and volumes, together with a considerably increased debt for the agents involved in the property market: investors, property developers, the so-called ‘marchands de biens’1 and households. This first stage was followed by a stage of decreasing prices and volumes, leaving the operators with stocks which they could no longer work down, and which fell in value as prices decreased. As these operators were unable to discharge their debts, the lending institutions have been obliged to set up reserves for doubtful or irrecoverable debts, leading some of them to go through a bad patch or to enter into liquidation.


Real Estate Rational Expectation Real Estate Market Asset Market Real Estate Investment 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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© Applied Econometrics Association 2003

Authors and Affiliations

  • Didier Cornuel
  • Francis Calcoen

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