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Why House Price Indexes Differ: Measurement and Analysis

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  • Mick Silver

Abstract

A key element in the build-up to the global recession and subsequently was the movement in house price indexes (HPIs). These indexes are particularly prone to methodological and coverage differences which can undermine both within-country and cross-country economic analysis. The paper outlines key measurement issues and reports on empirical work using an international panel data set that (i) considers whether differences in HPI measurement matter and, if so, in what way, and (ii) revisits the measurement of global house price inflation and the modeling of the determinants of house price inflation using HPIs corrected for differences in measurement practice.

Suggested Citation

  • Mick Silver, 2012. "Why House Price Indexes Differ: Measurement and Analysis," IMF Working Papers 2012/125, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2012/125
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    Cited by:

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    2. Miles, William, 2017. "Has there actually been a sustained increase in the synchronization of house price (and business) cycles across countries?," Journal of Housing Economics, Elsevier, vol. 36(C), pages 25-43.
    3. Cesa-Bianchi, Ambrogio, 2013. "Housing cycles and macroeconomic fluctuations: A global perspective," Journal of International Money and Finance, Elsevier, vol. 37(C), pages 215-238.
    4. Hideaki Hirata & M. Ayhan Kose & Christopher Otrok & Marco E Terrones, 2013. "Global House Price Fluctuations: Synchronization and Determinants," NBER International Seminar on Macroeconomics, University of Chicago Press, vol. 9(1), pages 119-166.
    5. Assil El Mahmah, 2013. "Constructing a real estate price index: the Moroccan experience," IFC Working Papers 9, Bank for International Settlements.
    6. Assil El Mahmah, 2013. "Constructing a real estate price index: the Moroccan experience," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Proceedings of the Sixth IFC Conference on "Statistical issues and activities in a changing environment", Basel, 28-29 August 2012., volume 36, pages 134-152, Bank for International Settlements.
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    9. Mick Silver & Brian Graf, 2014. "Commercial Property Price Indexes: Problems of Sparse Data, Spatial Spillovers, and Weighting," IMF Working Papers 2014/072, International Monetary Fund.
    10. Ms. Deniz O Igan & Mr. Prakash Loungani, 2012. "Global Housing Cycles," IMF Working Papers 2012/217, International Monetary Fund.

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