Commodity house prices

Charles Leung, Song Shi and Edward Chi Ho Tang

MPRA Paper from University Library of Munich, Germany

Abstract: This paper studies how commodity price movements have affected the local house prices in commodity-dependent economies, Australia and New Zealand. We build a geographically hierarchical empirical model and find the commodity prices influence local house prices directly and also indirectly through macroeconomic variables. The impacts of commodity price changes are analogous to “income shocks” rather than “cost shocks”. Regional heterogeneity is also observed in terms of differential dynamic responses of local house prices to energy versus non-energy commodity price movements. The results are robust to alternative approaches. Directions for future research are also discussed.

Keywords: regional economies; energy versus non-energy commodity price; propagation mechanism; geographically hierarchical model; dynamic analysis (search for similar items in EconPapers)
JEL-codes: F40 G10 R30 (search for similar items in EconPapers)
Date: 2013-09
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Citations: View citations in EconPapers (14)

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Related works:
Journal Article: Commodity house prices (2013)
Working Paper: Commodity house prices (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:49489

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