Differences in housing price dynamics across cities

A comparison of different panel model specifications

Bibliographic Data

ID10863731
AuthorsElias Oikarinen (0000-0003-4988-9130, University of Turku, corresponding author), Janne Engblom (0000-0002-5680-0993, University of Turku)
Year2016
Volume53
Issue11
Pages2312-2329
Publication date2016-08-01
Open AccessYes
TypeARTICLE
VenueUrban Studies (JOURNAL)
Journal identifiersISSN: 0042-0980 • E-ISSN: 1360-063X
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/0042098015589883
OpenAlexW2222708132
LanguageEN
Citations received2
References cited34

This study compares a conventionally used panel data model – that does not allow for regional variations in housing price dynamics – with panel models that let the dynamics differ across regions. We concentrate on examining the momentum dynamics and the reversion speed towards the fundamental price level. Based on data over 1988–2012, the results indicate that the regional differences are generally quite small in the Finnish market. Nevertheless, in several cities the dynamics differ significantly from those indicated by the baseline model that does not allow for regional variation. In addition, the long-term coefficient on income considerably varies across regions, the coefficient being greater in the more supply-constrained cities. The results indicate that the use of panel models that assume similar housing price dynamics across regions can lead to flawed conclusions being drawn

Baseline (sea · Demographic economics · Dynamics (music · Econometrics · Economic geography · Economics · Financial economics · Mean reversion · Momentum (technical analysis · Panel analysis · Panel data · Panel Study of Income Dynamics · demographic modeling and climate adaptation · Housing Market and Economics · Psychology · Spatial and Panel Data Analysis

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