Internal migration and house prices in Australia

Migration, Capital Formation, and House Prices

We investigate the effects of interregional labor market integration in a twosector, overlapping-generations model with land-intensive production in the nontradable goods sector (housing). To capture the response to migration on housing supply, capital formation is endogenous, assuming that firms face capital adjustment costs. Our analysis highlights heterogeneous welfare effects of labor marke...

House prices, household debt and labour supply in Australia

House prices and mortgage market liberalisation in Australia

Financial liberalisation and innovation (FLIB) in Australia over the 1980s and 1990s provided the institutional backdrop for one of the most rapid increases in household balance sheets and house prices in the world. An error correction model of quarterly Australian house prices for 1972-2006 identi…es the key long run drivers as real non-property income per house, the working age population pro...

Stock prices and house prices: Which one affects the other?

Stocks and houses as two major assets which play important role in the balance sheet of Iranian households. Changes in two markets have a large influence on wealth and the general economy. The purpose of this study is to examine the relationship between stock and house prices over a thirty-year period using vector auto-regression (VAR). Using yearly data for the period from 1985 to 2013, we con...

On the Interaction Between Migration, Capital Formation, and House Prices∗

We investigate the effects of interregional labor market integration on the dynamic interaction between migration and capital formation through changes in house prices. The nature of this interaction depends on initial conditions at the time of labor market integration. In an initially capital-poor economy, there may be a reversal of migration during the transition to the steady state, like obs...