Share
Finance and Economics Discussion Series: The Long-Run Relationship Between House Prices and Income: Evidence from Local Housing Markets (in English)
United States Federal Reserve Board
(Author)
·
Joshua Gallin
(Author)
·
Bibliogov
· Paperback
Finance and Economics Discussion Series: The Long-Run Relationship Between House Prices and Income: Evidence from Local Housing Markets (in English) - Gallin, Joshua ; United States Federal Reserve Board
$ 12.42
$ 14.75
You save: $ 2.33
Choose the list to add your product or create one New List
✓ Product added successfully to the Wishlist.
Go to My WishlistsIt will be shipped from our warehouse between
Tuesday, July 02 and
Wednesday, July 03.
You will receive it anywhere in United States between 1 and 3 business days after shipment.
Synopsis "Finance and Economics Discussion Series: The Long-Run Relationship Between House Prices and Income: Evidence from Local Housing Markets (in English)"
The proposition that "housing prices can't continue to outpace growth in household income" (Wall Street Journal; July 25, 2002) is the received wisdom among many housing-market observers. More formally, many in the housing literature argue that house prices and income are cointegrated. In this paper, I show that the data do not support this view. Standard tests using 27 years of national-level data do not find evidence of cointegration. However, it is known that tests for cointegration have low power, especially in small samples. I use panel-data tests for cointegration that have been shown to be more powerful than their standard time-series counterparts to test for cointegration in a panel of 95 metro areas over 23 years. Using a bootstrap approach to allow for cross-correlations in city-level house-price shocks, I show that even these more powerful tests do not reject the hypothesis of no cointegration. Thus the error-correction specification for house prices and income commonly found in the literature may be inappropriate.
- 0% (0)
- 0% (0)
- 0% (0)
- 0% (0)
- 0% (0)
All books in our catalog are Original.
The book is written in English.
The binding of this edition is Paperback.
✓ Producto agregado correctamente al carro, Ir a Pagar.
