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Commodity house prices

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  • Leung, Charles Ka Yui
  • Shi, Song
  • Ho Tang, Edward Chi

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.

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Bibliographic Info

Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 43 (2013)
Issue (Month): 6 ()
Pages: 875-887

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Handle: RePEc:eee:regeco:v:43:y:2013:i:6:p:875-887

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Related research

Keywords: Regional economies; Energy versus non-energy commodity price; Propagation mechanism; Geographically hierarchical model; Dynamic analysis;

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