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Spatio-temporal dynamics of house prices in the USA

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  • Girum Dagnachew Abate

    (Arizona State University)

Abstract

This study examines the space-time dynamics of real house prices and macroeconomic fundamentals such as real per capita disposable income and interest rate across 373 metropolitan areas in the US during 1976–2011. The estimation results of the dynamic spatial Durbin model show significant spatial spillover effects indicating that macroeconomic fundamentals of neighboring metropolitan areas play important role in real house price determination. The time varying version of the dynamic model also indicates an increasing spatial correlation in house price and income interactions over the sample period.

Suggested Citation

  • Girum Dagnachew Abate, 2017. "Spatio-temporal dynamics of house prices in the USA," Letters in Spatial and Resource Sciences, Springer, vol. 10(2), pages 141-147, July.
    • Handle: RePEc:spr:lsprsc:v:10:y:2017:i:2:d:10.1007_s12076-016-0177-3
    DOI: 10.1007/s12076-016-0177-3
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    References listed on IDEAS

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    1. Nicolas DEBARSY (CERPE De Namur) & Cem ERTUR & James P. LeSAGE, 2010. "Interpreting Dynamic Space-Time Panel Data Models," LEO Working Papers / DR LEO 800, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
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    7. Badi H. Baltagi & Jing Li, 2014. "Further Evidence On The Spatio‐Temporal Model Of House Prices In The United States," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 29(3), pages 515-522, April.
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    More about this item

    Keywords

    Dynamic spatial model; Real house prices; Real per capita disposable income; Time varying spatial model;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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