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A Pair-Wise Analysis of Intra-City Price Convergence Within the Paris Housing Market

Listed author(s):
  • Mark J. Holmes

    ()

    (Department of Economics, Waikato University, New Zealand)

  • Jesus Otero

    ()

    (Department of Economics, University of Rosario, Colombia)

  • Theodore Panagiotidis

    ()

    (Department of Economics, University of Macedonia, Greece; The Rimini Centre for Economic Analysis, Italy)

We examine long-run house price convergence across the twenty Paris districts using a quarterly dataset that spans from 1991 to 2014. Our econometric modelling exercise adopts a pair wise approach that is built on a probabilistic test for convergence based on house price differentials. We find that more than 50% of the intra-city house price differentials that can be computed are stationary. Our findings further reveal that the half-life of a shock to long-run price equilibrium is affected positively by unemployment, distance and housing supply.

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Paper provided by The Rimini Centre for Economic Analysis in its series Working Paper Series with number 15-39.

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Date of creation: Nov 2015
Handle: RePEc:rim:rimwps:15-39
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