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Is There Long-run Convergence among Regional House Prices in the UK?
- Source :
- Urban Studies (Sage Publications, Ltd.); Jul2008, Vol. 45 Issue 8, p1531-1544, 14p, 4 Charts, 5 Graphs
- Publication Year :
- 2008
-
Abstract
- This paper investigates the long-run convergence of regional house prices in the UK. Existing studies have failed to reach a consensus on whether or not regional house prices exhibit long-run convergence with each other. The application is proposed of a new test involving unit root testing of the first principal component based on regional-national house price differentials. Using mix-adjusted quarterly data for 1973-2006, it is found that the first principal component is stationary. This suggests that all UK regional house prices are driven by a single common stochastic trend. Further analysis suggests that those regions that are more distant from London exhibit the highest degrees of persistence with respect to deviations in house price differentials. [ABSTRACT FROM AUTHOR]
- Subjects :
- STOCHASTIC analysis
HOME prices
ECONOMIC convergence
STOCHASTIC approximation
Subjects
Details
- Language :
- English
- ISSN :
- 00420980
- Volume :
- 45
- Issue :
- 8
- Database :
- Complementary Index
- Journal :
- Urban Studies (Sage Publications, Ltd.)
- Publication Type :
- Academic Journal
- Accession number :
- 34477690
- Full Text :
- https://doi.org/10.1177/0042098008091489