On the Interaction Between Migration, Capital Formation, and House Prices∗
نویسندگان
چکیده
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 observed in Eastern Europe after 1990. In a high-productivity country which attracts immigrants, house and land prices gradually increase despite the induced (residential) capital investments. Welfare effects are heterogeneous: whereas individuals without residential property lose from immigration due to increased housing costs, landowners may win.
منابع مشابه
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...
متن کاملStock 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...
متن کاملMigration within England and Wales and the Housing Market
Economic conditions exert a strong influence on regional migration. On the one hand, strong labour market conditions, as exemplified by low unemployment rates and high earnings, draw migrants into regions. On the other hand, strong housing market conditions can prevent movement since commuting may often be an alternative to migration. This can be thought of as giving rise to a migration equilib...
متن کاملReading House Prices in Australian Capital Cities
House prices in the Australian capital cities have been increasing over the last two decades. An over 10% average annual increase arises in the capital cities. In Melbourne, Brisbane and Perth, the house prices increased by more than 15% annually, while the house prices in Darwin increased by even higher at about 21%. It is surprising that, after a decrease in 2008, the house prices in the Aust...
متن کاملA Comparative Study on Capital Formation in the Usury and Non-usury Economic Systems
The rule of ideologies which ban interest or usury which is earned through lending money has led to developing economic systems that differ from conventional economic systems in which ,interest has been entered. The presence of systems not relying on interest, in turn, has questioned the necessary motives in capital establishments through savings. In this paper, while defining the concepts of m...
متن کامل