Exploring Metropolitan Housing Price Volatility
نویسندگان
چکیده
This paper uses MSA level data and a panel VAR model to analyze the dynamic determination and impact of the volatility of single-family home value appreciation. We find that the volatility can be magnified by an exogenous increase in the home appreciation rate, responds to changes in the population growth rate, and is serially correlated. Moreover, an exogenous increase in the volatility increases the home appreciation rate, reduces personal income growth rate and affects population growth rate. Our analysis also provides strong evidence of heterogeneity of the MSA housing markets. JEL classification: C52, G10, R21, R31
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