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Measuring the diffusion of housing prices across space and over time*

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  • Ryan R. Brady

Abstract

How fast and how long (and to what magnitude) does a change in housing prices in one region affect its neighbors? In this paper, I apply a time series technique for measuring impulse response functions from local projections to a spatial autoregressive model of housing prices. For a dynamic panel of California counties, the data reveal that the diffusion of regional housing prices across space lasts up to two and half years. This result, and the econometric techniques employed, should be of interest not only to housing and regional economists, but to a variety of applied econometricians as well. Copyright (C) 2009 John Wiley & Sons, Ltd.

Suggested Citation

  • Ryan R. Brady, 2011. "Measuring the diffusion of housing prices across space and over time," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(2), pages 213-231, March.
    • Handle: RePEc:wly:japmet:v:26:y:2011:i:2:p:213-231
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    File URL: http://hdl.handle.net/10.1002/jae.1118
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    References listed on IDEAS

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    Replication

    This item has been replicated by:
  • Shulin Shen & Jindong Pang, 2018. "Measuring the diffusion of housing prices across space and over time: Replication and further evidence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 33(3), pages 479-484, April.

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