Determinantes del Precio de Viviendas en Chile
This paper econometrically examines the factors determining the real estate price dynamics in Chile in the period 1990-2007. For such purpose, we use annual data of 419 homes located in the Metropolitan Area and acquired in that period. The results indicate that variables such as age and size are statistically significant determinants in the formation of property prices; access to the subway stations tends to capitalize in a non-linear manner; and both household income and aggregate income are statistically and economically significant. The price decomposition reveals that between 69% and 71% of the housing price level is explained by determinants related to attributes of the property, while about 70% of the observed growth in housing prices between 1990 and 2007 is the result of macro-financial determinants. During 2006 and 2007, the trend in prices is not significantly different from that predicted by the model. These results tend to be similar using alternative estimates by housing type and different sample sub-periods.
|Date of creation:||Dec 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (562) 670 2000
Fax: (562) 698 4847
Web page: http://www.bcentral.cl/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alan G. Ahearne & John Ammer & Brian M. Doyle & Linda S. Kole & Robert F. Martin, 2005.
"Monetary policy and house prices: a cross-country study,"
International Finance Discussion Papers
841, Board of Governors of the Federal Reserve System (U.S.).
- Alan G. Ahearne & John Ammer & Brian M. Doyle & Linda S. Kole & Robert F. Martin, 2005. "Monetary Policy and House Prices: A Cross-Country Study," Working Papers Central Bank of Chile 344, Central Bank of Chile.
- Rubinfeld, Daniel L., 1987. "The economics of the local public sector," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 2, chapter 11, pages 571-645 Elsevier.
- Bartik, Timothy J, 1987. "The Estimation of Demand Parameters in Hedonic Price Models," Journal of Political Economy, University of Chicago Press, vol. 95(1), pages 81-88, February.
- Quiroga, Bernardo F., 2005. "Precios hedónicos para valoración de atributos de viviendas sociales en la Región Metropolitana de Santiago," MPRA Paper 378, University Library of Munich, Germany.
- Bover, Olympia & Velilla, Pilar, 2002.
"Hedonic house prices without characteristics: the case of new multiunit housing,"
Working Paper Series
0117, European Central Bank.
- Bover, Olympia & Velilla Lucini, Pilar, 2002. "Hedonic House Prices Without Characteristics: The Case of New Multiunit Housing," CEPR Discussion Papers 3161, C.E.P.R. Discussion Papers.
- Chumacero, Romulo & Gómez Caorsi, Daniel & Paredes, Ricardo, 2008. "I would walk 500 miles (if it paid)," MPRA Paper 15125, University Library of Munich, Germany, revised Dec 2008.
- Christopher A. Manning, 1988. "The Determinants of Intercity Home Building Site Price Differences," Land Economics, University of Wisconsin Press, vol. 64(1), pages 1-14.
- Gramlich, Edward M & Rubinfeld, Daniel L, 1982. "Micro Estimates of Public Spending Demand Functions and Tests of the Tiebout and Median-Voter Hypotheses," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 536-60, June.
- Claudio Borio & Patrick McGuire, 2004. "Twin peaks in equity and housing prices?," BIS Quarterly Review, Bank for International Settlements, March.
- John Bound & David A. Jaeger & Regina Baker, 1993. "The Cure Can Be Worse than the Disease: A Cautionary Tale Regarding Instrumental Variables," NBER Technical Working Papers 0137, National Bureau of Economic Research, Inc.
- Paul Louis Ceriel Hilbers & Lisbeth Zacho & Qin Lei, 2001. "Real Estate Market Developments and Financal Sector Soundness," IMF Working Papers 01/129, International Monetary Fund.
- Guy Debelle, 2004. "Macroeconomic implications of rising household debt," BIS Working Papers 153, Bank for International Settlements.
- Yinger, John, 1982. "Capitalization and the Theory of Local Public Finance," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 917-43, October.
When requesting a correction, please mention this item's handle: RePEc:chb:bcchwp:549. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudio Sepulveda)
If references are entirely missing, you can add them using this form.