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Housing and the Great Depression

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  • Mehmet Balcilar

    ()
    (Department of Economics, Eastern Mediterranean University)

  • Rangan Gupta

    ()
    (Department of Economics, University of Pretoria)

  • Stephen M. Miller

    ()
    (Department of Economics, University of Nevada, Las Vegas)

Abstract

This paper considers the role of the real housing price in the Great Depression. More specifically, we examine structural stability of the relationship between the real housing price and real GDP per capita. We test for structural change in parameter values, using a sample of annual US data from 1890 to 1952. The paper examines the long-run and short-run dynamic relationships between the real housing price and real GDP per capita to determine if these relationships experienced structural change over the sample period. We find that temporal Granger causality exists between these two variables only for sub-samples that include the Great Depression. For the other sub-sample periods as well as for the entire sample period no relationship exists between these variables.

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File URL: http://web.unlv.edu/projects/RePEc/pdf/1301.pdf
File Function: First version, 2013
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Bibliographic Info

Paper provided by University of Nevada, Las Vegas , Department of Economics in its series Working Papers with number 1301.

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Length: 38 pages
Date of creation: Apr 2013
Date of revision:
Handle: RePEc:nlv:wpaper:1301

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Keywords: Great Depression; Real House Price; Real GDP per Capita; Structural change;

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References

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Cited by:
  1. Aye, Goodness C. & Balcilar, Mehmet & Bosch, Adél & Gupta, Rangan, 2014. "Housing and the business cycle in South Africa," Journal of Policy Modeling, Elsevier, vol. 36(3), pages 471-491.
  2. Goodness C. Aye & Mehmet Balcilar & John P. Dunne & Rangan Gupta & Renee van Eyden, 2013. "Military Expenditure, Economic Growth and Structural Instability: A Case Study of South Africa," Working Papers 201344, University of Pretoria, Department of Economics.

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