Template-Type: ReDIF-Paper 1.0
Author-Name: Efthymios Pavlidis
Author-Name-First: Efthymios
Author-Name-Last: Pavlidis
Author-Name: I Paya
Author-Name-First: I
Author-Name-Last: Paya
Author-Name: D Peel
Author-Name-First: D
Author-Name-Last: Peel
Author-Name: A M Spiru
Author-Name-First: A M
Author-Name-Last: Spiru
Title: Bubbles in House Prices and their Impact on Consumption: Evidence for the US
Abstract: This paper provides evidence that some aggregate and regional U.S. real
house price indices exhibited a bubble in the last few years according to the
Phillips et al. (2007) unit root test. We subsequently investigate whether house
price acceleration (deceleration) had a signi.cant impact on consumption in an
error correction mechanism implied by a wide class of optimizing models. Our
results support the argument that real house prices have their major effect on
consumption only during the bubble period.
Creation-Date: 2009
File-URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/BubblesHousePrices.pdf
File-Format: application/pdf
Number: 601552
Classification-JEL: 
Keywords: Bubble, House prices, Consumption
Handle: RePEc:lan:wpaper:601552