Space matters: Understanding the real effects of macroeconomic variations in cross-country housing price movements

Mamata Parhi, Kun Duan, Tapas Mishra

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Changes in macroeconomic conditions can significantly determine directions and magnitudes of cross-country housing price movements. We demonstrate that such effects are consistently over-estimated when ‘spatial frictions’ are merely assumed, but are not explicitly modeled in the empirical framework. The extent of over-estimation bias has significant policy implications.

© 2017, Elsevier. The attached document (embargoed until 14/12/2019) is an author produced version of a paper published, in Economics Letters, uploaded in accordance with the publisher’s self- archiving policy. The final published version (version of record) is available online at the link below. Some minor differences between this version and the final published version may remain. We suggest you refer to the final published version should you wish to cite from it.
Original languageEnglish
Pages (from-to)130-135
Publication statusPublished - 1 Feb 2018

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