Domino effects within a housing market : the transmission of house price changes across quality tiers
The Journal of Real Estate Finance and Economics
Springer New York LLC
Housing, Homeownership, Ripple effect, Downpayment, Price dynamics, Equity effects, Public housing, Privatization, Domino effect
We argue that shocks to a housing market are transmitted through the hierarchy of quality tiers within a housing market. The result is the prediction of waves of house price changes accompanied by changes in transaction volume. Our study is related to existing models of spatial ripple effects across housing markets. The data are from the Hong Kong housing market. The findings from Granger causality tests strongly support the argument that domino effects within a single housing market occur in response to external shocks.
This research was supported by two Competitive Earmarked Research Grants (No. LU3008/00H and LU3110/03H) from the RGC of Hong Kong SAR Government.
Copyright © 2008 Springer US
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Ho, L. S., Ma, Y., & Haurin, D. R. (2008). Domino effects within a housing market: The transmission of house price changes across quality tiers. The Journal of Real Estate Finance and Economics, 37(4), 299-316. doi: 10.1007/s11146-007-9070-6