Ripple effect in house prices and trading volume in the UK housing market: New viewpoint and evidence

I-Chun Tsai

Economic Modelling, 2014, vol. 40, issue C, 68-75

Abstract: This study adopts the data of house prices and trading volume in the overall UK housing market and in the housing markets in the 10 major regions in the UK to estimate the ripple effect in the trading activities in the housing markets. First, this study details why the ripple effect occurs in the housing market price and volume using static and cobweb dynamic models. The results of the panel-based unit root tests indicate that the relative price and volume ratios show constancy, signifying that long-run equilibrium relationships exist between the regional and national housing markets in the UK. The frequency of the transaction volume convergence behavior is higher than that of the overall house prices.

Keywords: Ripple effect; House price; Trading volume; The UK housing market; Panel data (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (25)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:40:y:2014:i:c:p:68-75

DOI: 10.1016/j.econmod.2014.03.026

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