Commodity house prices

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

10 Scopus Citations
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Detail(s)

Original languageEnglish
Pages (from-to)875-887
Journal / PublicationRegional Science and Urban Economics
Volume43
Issue number6
Online published9 Sep 2013
Publication statusPublished - Nov 2013

Abstract

This paper studies how commodity price movements have affected the local house prices in commodity-dependent economies, Australia and New Zealand. We build a geographically hierarchical empirical model and find that the commodity prices influence local house prices directly and also indirectly through macroeconomic variables. The impacts of commodity price changes are analogous to "income shocks" rather than "cost shocks". Regional heterogeneity is also observed in terms of differential dynamic responses of local house prices to energy versus non-energy commodity price movements. The results are robust to alternative approaches. Directions for future research are also discussed. © 2013 Elsevier B.V.

Research Area(s)

  • Dynamic analysis, Energy versus non-energy commodity price, Geographically hierarchical model, Propagation mechanism, Regional economies

Citation Format(s)

Commodity house prices. / Leung, Charles Ka Yui; Shi, Song; Ho Tang, Edward Chi.

In: Regional Science and Urban Economics, Vol. 43, No. 6, 11.2013, p. 875-887.

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