Regional divergence and house prices

Howard, Greg; Liebersohn, Jack

doi:10.1016/j.red.2022.10.002

Cited by 7 publications

(6 citation statements)

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“…Howard and Liebersohn (2023) employed regional divergence as an instrumental variable for U.S. house prices. Regional divergence in the U.S. represents the rate at which rich states grow faster than poor ones.…”

Section: Resultsmentioning

confidence: 99%

“…However, it could be argued that house price movements are contemporaneously associated with changes in other macroeconomic aggregates (Ramey, 2016). The literature on house price shocks employs various strategies to address this issue, such as utilizing interactions between regional housing supply and demand changes, regional divergence, and geographic variables (Guren et al, 2021;Howard & Liebersohn, 2023;Pinter, 2019;Saiz, 2010). Using an SVAR, Pinter (2019) utilized supply and demand elements of the housing market to identify the house price shock.…”

Section: Supply Shock and Alternative Identificationmentioning

confidence: 99%

“…In our setup, this shock influences financial markets, which, in turn, transmit the shock to industrial production. We also test two alternative identification strategies: (i) incorporating movements in house supply and demand, and (ii) considering regional divergence (Howard & Liebersohn, 2023).…”

Section: Introductionmentioning

confidence: 99%

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Housing market, oil prices, and macroeconomic volatility in the G7

Attílio

2024

The Manchester School

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In this paper, we investigate house price shocks on the macroeconomic variables (financial market, inflation, and real sector) of the G7 economies. We use the GVAR to capture the spillover effects from the U.S. housing market and oil prices on these economies from 1991M3–2022M10. We identify the U.S. house price shock using the Structural Generalized Impulse Response Function, house supply and demand variables, and regional divergence. We find that the domestic stock markets and industrial production are the most sensitive to house price shocks. We further compare the importance of house and oil prices on domestic fluctuations. The estimates reinforce the previous findings: U.S. house prices are responsible for a quarter of the domestic volatility of the stock markets and industrial production. In the other macroeconomic segments, the effects of house prices are present, but in lower values. Our results show that house prices provoke more domestic fluctuations than oil prices. Finally, we also found that short and long‐term credit markets, as well as stock markets, transmit the house price shock to industrial production. Consequently, we provide potential channels to comprehend the spillover effect of U.S. house prices on international markets.

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Section: Resultsmentioning

confidence: 99%

Section: Supply Shock and Alternative Identificationmentioning

confidence: 99%

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Housing market, oil prices, and macroeconomic volatility in the G7

Attílio

2024

The Manchester School

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“…, 2017, 2018, 2019; Ganioğlu and Seven, 2021; Maynou et al. , 2021; Howard and Liebersohn, 2022; among others), very few studies are found for developing countries (Ganioğlu and Seven, 2021). More specifically, the majority of studies are conducted in the case of China at the province or city levels (Chien, 2010; Zhang and Morley, 2013; Lee and Lee, 2016; Gabrieli and Panagiotidis, 2019).…”

Section: Introductionmentioning

confidence: 99%

“…However, the examination of HP convergence is rare, particularly at the regional level. Moreover, although some studies exist in the case of developed countries such as Australia, Spain, Euro Zone, USA, UK, Greater London (Abbott and De Vita, 2011b;Montañ es and Olmos, 2013;Miles, 2020;Holmes et al, 2017Holmes et al, , 2018Holmes et al, , 2019Ganio glu and Seven, 2021;Howard and Liebersohn, 2022;among others), very few studies are found for developing countries (Ganio glu and Seven, 2021). More specifically, the majority of studies are conducted in the case of China at the province or city levels (Chien, 2010;Zhang and Morley, 2013;Lee and Lee, 2016;Gabrieli and Panagiotidis, 2019).…”

Section: Introductionmentioning

confidence: 99%

Housing price convergence: new evidence from Indian cities

Akram

Mukherjee

2023

JES

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PurposeThe main purpose of this paper is to examine the convergence hypothesis of House Price Index (HPI) in the case of 18 major Indian cities for the period 2014–2019.Design/methodology/approachTo attain the authors main goal, this study applies a clustering algorithm advanced by Phillips and Sul. This test creates a club of convergence based on the growth of the cities in terms of HPI.Findings The study findings show the existence of two convergence clubs and one non-convergent group. Club 1 includes the cities with high HPI growth, whereas club 2 comprises of cities with least HPI growth. Cities belonging to the non-convergent group are neither converging nor diverging.Practical implicationsThis study findings will benefit home buyers, sellers, investors, regulators and policymakers interested in the dynamic interlinkages of house price (HP) among Indian cities.Originality/valueThe majority of the studies are conducted in the case of China at the province or city levels. Furthermore, in the case of India, none of the studies has investigated the HP club convergence across Indian cities. Therefore, the present study fills this research gap by examining the HP club convergence across Indian cities.

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Exploration of intelligent housing price forecasting based on the anchoring effect

Song

2023

Neural Comput & Applic

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Regional divergence and house prices

Cited by 7 publications

References 69 publications

Housing market, oil prices, and macroeconomic volatility in the G7

Housing market, oil prices, and macroeconomic volatility in the G7

Housing price convergence: new evidence from Indian cities

Exploration of intelligent housing price forecasting based on the anchoring effect

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