On the Effects of Consumer Sentiment on House Permits: Asymmetric Evidence From State-Level Data in the United States

Mohsen Bahmani-Oskooee, Hesam Ghodsi and Muris Hadzic

Journal of Real Estate Portfolio Management, 2023, vol. 29, issue 2, 79-105

Abstract: Previous studies analyzing the link between the housing market and consumer sentiment focus on the impact of the sentiment on house prices. This paper assesses the impact of consumer sentiment on house permits as a proxy for housing production using a linear model that assumes symmetric effects. Additionally, we consider a nonlinear asymmetric model. We estimate both models using state-level data from each state of the United States and find short-run effects of consumer sentiment on house permits in 31 and long-run effects in 33 states. The comparable numbers by estimating a nonlinear asymmetric model were 42 and 41, respectively. In sum, increased consumer confidence has positive long-run effects on the issuance of house permits in most states.

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/10835547.2023.2183373 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:repmxx:v:29:y:2023:i:2:p:79-105

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/repm20

DOI: 10.1080/10835547.2023.2183373

Access Statistics for this article

Journal of Real Estate Portfolio Management is currently edited by Peng Liu and Vivek Sah

More articles in Journal of Real Estate Portfolio Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().