Housing Market in Portugal revisited. A spatial analysis for 275 counties
In a former study (Carvalho 1995) we modeled the housing market in Portugal in a classic cross section framework and did find that housing construction was dependant from income, population and sensitive to location. Nevertheless we couldn’t find the extent of this sensitivity in such a framework. This paper is an upgrade of that study, using a spatial econometric model. Comparing the results, there are some slightly different estimates in the coefficients, but a lot more of precision once we incorporate the spatial interaction between the counties, changing the magnitude and significance of the coefficients.
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