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Bubbles in House Prices and their Impact on Consumption: Evidence for the US

Pavlidis, Efthymios and Paya, I and Peel, D and Spiru, A M (2009) Bubbles in House Prices and their Impact on Consumption: Evidence for the US. Working Paper. The Department of Economics, Lancaster University.

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    Abstract

    This paper provides evidence that some aggregate and regional U.S. real house price indices exhibited a bubble in the last few years according to the Phillips et al. (2007) unit root test. We subsequently investigate whether house price acceleration (deceleration) had a signi.cant impact on consumption in an error correction mechanism implied by a wide class of optimizing models. Our results support the argument that real house prices have their major effect on consumption only during the bubble period.

    Item Type: Monograph (Working Paper)
    Uncontrolled Keywords: Bubble ; House prices ; Consumption
    Subjects:
    Departments: Lancaster University Management School > Economics
    ID Code: 48967
    Deposited By: ep_importer_pure
    Deposited On: 11 Jul 2011 22:25
    Refereed?: No
    Published?: Published
    Last Modified: 07 May 2013 16:23
    Identification Number:
    URI: http://eprints.lancs.ac.uk/id/eprint/48967

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