Cookies?
Library Header Image
LSE Research Online LSE Library Services

Real effects of regional house prices: dynamic panel estimation with heterogeneity

Muñoz, Sònia (2004) Real effects of regional house prices: dynamic panel estimation with heterogeneity. Discussion paper, 493. Financial Markets Group, London School of Economics and Political Science, London, UK.

[img]
Preview
PDF
Download (444kB) | Preview
Identification Number: 493

Abstract

This paper uses recently developed methods for estimating dynamic heterogeneous cointegrated panel data models - which allows for heterogeneity in parameters and dynamics across agents - to study housing wealth effects in a dynamic model of the 50 US states and the District of Columbia from the 1970s to the 1990s. The results show that housing prices have a unit root and are cointegrated with consumption. Even though an aging population has some effect on consumption in some states, it cannot account for the heterogeneity in housing wealth elasticities. Finally, we find that when state heterogeneity is taken into account, housing capital gains translate into increased spending with an elasticity ranging from 0.15 to 0.23.

Item Type: Monograph (Discussion Paper)
Official URL: http://fmg.lse.ac.uk
Additional Information: © 2004 The Author
Subjects: H Social Sciences > HB Economic Theory
Sets: Research centres and groups > Financial Markets Group (FMG)
Collections > Economists Online
Collections > LSE Financial Markets Group (FMG) Working Papers
Date Deposited: 05 Aug 2009 10:45
Last Modified: 27 Feb 2014 15:35
URI: http://eprints.lse.ac.uk/id/eprint/24704

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics