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Measuring the diffusion of housing prices across space and over time

โœ Scribed by Ryan R. Brady


Publisher
John Wiley and Sons
Year
2009
Tongue
English
Weight
182 KB
Volume
26
Category
Article
ISSN
0883-7252

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โœฆ Synopsis


How fast and how long (and to what magnitude) does a change in housing prices in one region affect its neighbors? In this paper, I apply a time series technique for measuring impulse response functions from local projections to a spatial autoregressive model of housing prices. For a dynamic panel of California counties, the data reveal that the diffusion of regional housing prices across space lasts up to two and half years. This result, and the econometric techniques employed, should be of interest not only to housing and regional economists, but to a variety of applied econometricians as well.


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