Comments on: UK Housing Sector http://www.economicshelp.org/blog/housing/uk-housing-sector/ Economics Blog - current events and economics essays Thu, 18 Mar 2010 19:46:30 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: tejvan http://www.economicshelp.org/blog/housing/uk-housing-sector/comment-page-1/#comment-2600 tejvan Wed, 11 Feb 2009 14:00:54 +0000 http://www.economicshelp.org/blog/?p=1106#comment-2600 Yes, good point. At the time (end 2008), economic growth had just become negative so I answered it on assumption they were referring to current situation of negative economic growth. Yes, good point. At the time (end 2008), economic growth had just become negative so I answered it on assumption they were referring to current situation of negative economic growth.

]]> By: Simon Blake http://www.economicshelp.org/blog/housing/uk-housing-sector/comment-page-1/#comment-2599 Simon Blake Wed, 11 Feb 2009 13:48:59 +0000 http://www.economicshelp.org/blog/?p=1106#comment-2599 Fascinated with your answer - especially as the reader's question is exactly that set for a Level 1 university economics essay at my home institution. However, the said 'decline in economic growth' was intended to apply to a declining rate of growth, rather than a fall in GDP i.e. the possible precursor to a recession, rather than the recession itself. (Positive first derivative and negative second derivative, if we talk differential calculus for a moment) It's a subtle distinction, and one easily missed. The fascination is therefore with issues such as the changing expectations of consumers of property (housing) and with those supplying/constructing property (ditto). On the demand side, this might lead to a shift back in the market demand curve, and all the implications that might entail. These might then be followed through back to the macro level. Or not. On the supply side, it allows a student the chance to explore/play with the lags inherent in markets such as those for goods such as housing. The price inelasticity of supply is a clear example of a 'good' concept to invoke. Such a lag might lead to the 'usual' lagged impact upon employment to be extended yet further. Possibly. Enough already. Best wishes...and my apologies to you, Tejvan, on behalf of those students who plagiarised your answer. Fascinated with your answer – especially as the reader’s question is exactly that set for a Level 1 university economics essay at my home institution. However, the said ‘decline in economic growth’ was intended to apply to a declining rate of growth, rather than a fall in GDP i.e. the possible precursor to a recession, rather than the recession itself. (Positive first derivative and negative second derivative, if we talk differential calculus for a moment)

It’s a subtle distinction, and one easily missed. The fascination is therefore with issues such as the changing expectations of consumers of property (housing) and with those supplying/constructing property (ditto). On the demand side, this might lead to a shift back in the market demand curve, and all the implications that might entail. These might then be followed through back to the macro level. Or not.

On the supply side, it allows a student the chance to explore/play with the lags inherent in markets such as those for goods such as housing. The price inelasticity of supply is a clear example of a ‘good’ concept to invoke. Such a lag might lead to the ‘usual’ lagged impact upon employment to be extended yet further. Possibly.

Enough already.

Best wishes…and my apologies to you, Tejvan, on behalf of those students who plagiarised your answer.

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