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.

[img]
Preview
PDF (BubblesHousePrices)
BubblesHousePrices.pdf - Submitted Version

Download (149kB)

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:
/dk/atira/pure/subjectarea/aacsb/disciplinebasedresearch
Subjects:
ID Code:
48967
Deposited By:
Deposited On:
11 Jul 2011 21:25
Refereed?:
No
Published?:
Published
Last Modified:
25 Oct 2020 00:15