Earthquakes and House Prices: Evidence from Oklahoma

Cheung, Ron; Wetherell, Daniel; Whitaker, Stephan D.

doi:10.26509/frbc-wp-201631

Cited by 8 publications

(4 citation statements)

References 18 publications

(21 reference statements)

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…To dává dle autorů centrálním bankám určitou volnost v utahování měnové politiky, aniž by hrozil prudký pokles cen nemovitostí (splasknutí nemovitostní bubliny) a ohrožení fi nanční stability. Sherlund (2020) odhadl elasticity cen nemovitostí na úrokové sazby na detailních regionálních datech USA a došel k závěru, že růst úrokových sazeb vede v naprosté většině případů k poklesu cen nemovitostí.…”

Section: Rešerše Literaturyunclassified

House prices and long-term interest rates

Pour

2023

Politicka ekonomie

View full text Add to dashboard Cite

House prices and long-term interest ratesThe article deals with the question of whether there is an equilibrium relationship between longterm interest rates and rental yields or real estate prices. In the theoretical part, an arbitrage relationship with the real estate market is shown, emphasizing the importance of nominal interest rates in the house price-setting process. Simplified theoretical relationships are empirically tested on panel data for a number of countries in the world. The results suggest that there is a cointegrating relationship between long-term interest rates and rental yields. Rental yields tend to adjust to interest rates over a long time period dominantly through house price movements, not rent price movements. Furthermore, among other things, we found that house prices are positively influenced by lower investment freedom or higher ratio of people aged 20-34 to people 65+. Finally, a simple model-based outlook for house prices in Czechia is shown, suggesting a "soft landing" of house prices in 2023 and following years.

show abstract

Section: Rešerše Literaturyunclassified

House prices and long-term interest rates

Pour

2023

Politicka ekonomie

View full text Add to dashboard Cite

show abstract

“…For example, focussing on oil prices Elekdag, Lalonde, Laxton, Muir, and Pesenti (2007) examine the increase in demand for oil from emerging Asia using a Dynamic Stochastic General Equilibrium (DSGE) model and find that an exogenous shock to China's oil demand could lead to an increase in oil prices. Cheung and Morin (2007) use a regression approach with oil prices that are modelled to be dependent on lagged prices of oil, world output gap and the U.S. real exchange rate. They find that an increase in Emerging Asian industrial production leads to an increase in real oil prices.…”

Section: Literature Reviewmentioning

confidence: 99%

Economic growth in China and its impact on international commodity prices

Ghoshray

Pundit²

2020

Int. J Fin Econ

View full text Add to dashboard Cite

Since the turn of the century, China has experienced economic growth that has called for rapid industrialisation, infrastructure growth and urbanisation, making China highly dependent on primary commodities. The resource intensive growth path followed by a slowdown in recent years has raised the question to what extent her demand for commodities can affect international commodity prices. To this end, recent studies have analysed the link between economic growth or slowdown on commodity prices using linear multivariate models. However, a problem is that commodity prices are known to be highly variable and characterised by multiple structural changes. With such characteristics of the data, it is likely to be the case one may obtain mis‐specified inferences from a linear multivariate framework. Accordingly, we make use of novel Flexible Fourier Form (FFF) econometric procedures to account for multiple breaks in the economic variables, which have better power and size properties over the standard linear models. We find that the persistence of economic variables employed in this study and their causal link are better approximated by such nonlinear FFF procedures. Our results show that there is evidence of short run predictability between selected commodity prices and economic growth in China. Further, the responses of different commodity prices to shocks in economic growth are quite profound especially for those cases where we find causal links with economic growth in China. While we find a significant impact of economic growth of China on commodity prices, the response varies for different commodities.

show abstract

“…This study differs in the sense that it covers all counties within a panel series framework. In addition, Cheung et al (2016) examine the impact of earthquakes on residential property values using sales data from Oklahoma from 2006 to 2014. While before 2010, Oklahoma had only a couple of earthquakes per year that were strong enough to be felt by residents, since 2010, seismic activity has increased.…”

Section: Research In Relevance To Oklahomamentioning

confidence: 99%