Domino effects within a housing market : The transmission of house price changes across quality tiers

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Author(s)

  • Lok Sang Ho
  • Yue Ma
  • Donald R. Haurin

Detail(s)

Original languageEnglish
Pages (from-to)299-316
Journal / PublicationJournal of Real Estate Finance and Economics
Volume37
Issue number4
Publication statusPublished - Nov 2008
Externally publishedYes

Abstract

We argue that shocks to a housing market are transmitted through the hierarchy of quality tiers within a housing market. The result is the prediction of waves of house price changes accompanied by changes in transaction volume. Our study is related to existing models of spatial ripple effects across housing markets. The data are from the Hong Kong housing market. The findings from Granger causality tests strongly support the argument that domino effects within a single housing market occur in response to external shocks. © 2007 Springer Science+Business Media, LLC.

Research Area(s)

  • Domino effect, Downpayment, Equity effects, Homeownership, Housing, Price dynamics, Privatization, Public housing, Ripple effect