The nexus between housing and the macro economy : Hong Kong as a case study

Authors

Lok Sang HOFollow
Wai Chung, Gary WONGFollow

Document Type

Paper Series

Publication Date

2003

No.

143

Abstract

This paper presents the theory and the evidence showing the close relationship between the performance of the macroeconomy and housing. Focusing on the Hong Kong experience, it is found that exports and the interest rate were two key variables that can explain the movement of housing prices over a long period. A structural break is identified in the first quarter of 1998. Using the cointegration framework, the paper highlights the importance of housing to both the economic health of the domestic sector and the fiscal health of the economy.

Comments

CPPS Working Paper Series No.143 (10/03)

Recommended Citation

Ho, L. S., & Wong, W. C. G. (2003). The nexus between housing and the macro economy: Hong Kong as a case study (CPPS Working Paper Series No.143). Retrieved from Lingnan University website: http://commons.ln.edu.hk/cppswp/66/