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A Disaggregated Analysis of Asymmetrical Behaviour in the UK Housing Market

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  • Steven Cook

    (Department of Economics, University of Wales Swansea, Singleton Park, Swansea, SA2 8PP, UK, s.cook@swan.ac.uk)

Abstract

Potential asymmetrical adjustment in UK house prices is considered. The present analysis extends previous research in a number of crucial ways. First, a seminal examination of asymmetry in regionally disaggregated UK house prices is undertaken. Secondly, data are examined which are further disaggregated according to the age, or vintage, of the housing stock. However, the major development concerns the application of a non-parametric testing approach to detect cyclical asymmetry. In contrast to previously employed tests in the economics literature, the Triples test employed possesses high power and is not sensitive to outliers. It is found that extensive asymmetry is present in UK house prices, with cyclical peaks typically being greater in magnitude than corresponding troughs. The implications of these findings for the comparison and construction of economic theories of the housing market, the specification of econometric models and the construction and implementation of economic policy are noted.

Suggested Citation

  • Steven Cook, 2006. "A Disaggregated Analysis of Asymmetrical Behaviour in the UK Housing Market," Urban Studies, Urban Studies Journal Limited, vol. 43(11), pages 2067-2074, October.
    • Handle: RePEc:sae:urbstu:v:43:y:2006:i:11:p:2067-2074
    DOI: 10.1080/00420980600897735
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    References listed on IDEAS

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    Cited by:

    1. Montagnoli, Alberto & Nagayasu, Jun, 2015. "UK house price convergence clubs and spillovers," Journal of Housing Economics, Elsevier, vol. 30(C), pages 50-58.
    2. Alberto Montagnoli & Jun Nagaysu, 2013. "An investigation of housing affordability in the UK regions," Working Papers 1316, University of Strathclyde Business School, Department of Economics.
    3. Eleni Kyriazakou & Theodore Panagiotidis, 2018. "A nonlinear pairwise approach for the convergence of UK regional house prices," International Economics and Economic Policy, Springer, vol. 15(2), pages 467-481, April.

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