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Is Housing Activity a Leading Indicator?

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  • JAMMIE H. PENM
  • R.D. TERRELL

Abstract

We investigate whether housing activity is a leading indicator of general activity using two dynamic systems. In the national account system, the results indicate that dwelling investment contains leading information for gross national expenditure. In a five‐variable system including a measure of economic activity, housing activity, money, prices and a short‐term interest rate, housing activity is found to provide an important linkage between economic activity and the rest of the system. These results consistently affirm that housing activity is a leading indicator of general economic activity.

Suggested Citation

  • Jammie H. Penm & R.D. Terrell, 1994. "Is Housing Activity a Leading Indicator?," The Economic Record, The Economic Society of Australia, vol. 70(210), pages 241-252, September.
    • Handle: RePEc:bla:ecorec:v:70:y:1994:i:210:p:241-252
    DOI: 10.1111/j.1475-4932.1994.tb01844.x
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    References listed on IDEAS

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