Domino effects within a housing market : the transmission of house price changes across quality tiers
Document Type
Journal article
Source Publication
The Journal of Real Estate Finance and Economics
Publication Date
11-1-2008
Volume
37
Issue
4
First Page
299
Last Page
316
Publisher
Springer New York LLC
Keywords
Housing, Homeownership, Ripple effect, Downpayment, Price dynamics, Equity effects, Public housing, Privatization, Domino effect
Abstract
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.
DOI
10.1007/s11146-007-9070-6
Print ISSN
08955638
E-ISSN
1573045X
Funding Information
This research was supported by two Competitive Earmarked Research Grants (No. LU3008/00H and LU3110/03H) from the RGC of Hong Kong SAR Government.
Publisher Statement
Copyright © 2008 Springer US
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
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