The Economist annually publishes The Economist House Price Index. It attempts to assess which housing markets, by country, are the most overvalued or undervalued relative to fundamentals. Find the most recent version of this data on the Web.

a. One index of overvaluation is the ratio of house prices to rents. Why might this index help detect a housing price bubble? Using the data you are studying, in which country are house prices most overvalued by the ratio of prices to rents? Would this measure have helped predict the US housing market crash?

b. A second index is the ratio of house prices to income. Why might this index help detect a housing price bubble? Using this data, in which country are houses most overvalued by the ratio of prices to rents? Would this measure have helped predict the US housing market crash?