METROPOLITAN HOUSE PRICES IN INDIA: DO THEY CONVERGE?

Goodness Aye (), Samrat Goswami () and Rangan Gupta
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Goodness Aye: Department of Agricultural Economics, University of Agriculture, Makurdi, Nigeria
Samrat Goswami: Department of Rural Management and Development, Tripura University

No 201220, Working Papers from University of Pretoria, Department of Economics

Abstract: The paper examines the long-run behavior of house prices by addressing the issue of price convergence or divergence across fifteen metropolitan cities in India. Using available city-level quarterly data covering the period 2007-2011 and applying the Im, Pesaran and Shin (2003) panel unit root test, it is found that relative price levels among various metropolitan cities in India do not converge. This implies that the Law of One Price does not hold in the Indian housing market, hence the different metropolitan house markets operate independent to one another.

Keywords: House Prices; Law of One Price; Price Convergence; India (search for similar items in EconPapers)
JEL-codes: D40 L85 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2012-06
New Economics Papers: this item is included in nep-geo and nep-ure
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:pre:wpaper:201220

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