Housing price dynamics and convergence in high-tech metropolitan economies

Wensheng Kang

The Quarterly Review of Economics and Finance, 2011, vol. 51, issue 3, 283-291

Abstract: Abstract This paper estimates the joint effects of spatial diffusion and high-tech industry transmission on housing prices. I find these effects are significant but generate different short-run dynamics and long-run convergence of housing prices. The spatial diffusion effect is instantaneous but short-lived, whereas the high-tech industry effect is persistent. The dynamics conclusion is supported by estimates of a dynamic panel model using data of 42 high-tech metropolitan areas. A further convergence test shows that it is the high-tech industrial transmission mechanism, not the spatial diffusion, to drive the housing price convergence.

Keywords: Housing; prices; Spatial; diffusion; Industrial; transmission; Convergence; GMM; Bayesian; estimation (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:51:y:2011:i:3:p:283-291

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