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Ricardian causal ordering and the relation between house and land prices: evidence from England

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  • Ahmed Alyousha
  • Christopher Tsoukis

Abstract

This letter tests the relevance of the Ricardian interpretation of the causal relationship between rent and corn price for the English housing market, by testing for strong exogeneity between house and land prices. The results are mixed. On the one hand they support the weak exogeneity of house prices, while they fail to accept that land prices are Granger-caused by house prices.

Suggested Citation

  • Ahmed Alyousha & Christopher Tsoukis, 1998. "Ricardian causal ordering and the relation between house and land prices: evidence from England," Applied Economics Letters, Taylor & Francis Journals, vol. 5(5), pages 325-328.
    • Handle: RePEc:taf:apeclt:v:5:y:1998:i:5:p:325-328
    DOI: 10.1080/758524411
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    References listed on IDEAS

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    1. Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-1580, November.
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    4. Podivinsky, Jan M., 1992. "Small sample properties of tests of linear restrictions on cointegrating vectors and their weights," Economics Letters, Elsevier, vol. 39(1), pages 13-18, May.
    5. Robert Engle & Clive Granger, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    6. Gonzalo, Jesus & Lee, Tae-Hwy, 1998. "Pitfalls in testing for long run relationships," Journal of Econometrics, Elsevier, vol. 86(1), pages 129-154, June.
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    Cited by:

    1. Maddison, David & Rehdanz, Katrin, 2014. "Was Ricardo Right?," 88th Annual Conference, April 9-11, 2014, AgroParisTech, Paris, France 169733, Agricultural Economics Society.
    2. Du, Hongyan & Ma, Yongkai & An, Yunbi, 2011. "The impact of land policy on the relation between housing and land prices: Evidence from China," The Quarterly Review of Economics and Finance, Elsevier, vol. 51(1), pages 19-27, February.

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