House prices, disposable income and permanent and temporary shocks: The NZ, UK and US experience
Purpose: The purpose of this paper is to compare responses of house prices in three important markets when faced with permanent and temporary shocks to income. It additionally decomposes each historical house price series into its permanent, temporary and deterministic components. Design/methodology...
| Main Authors: | , , |
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| Format: | Journal Article |
| Published: |
Emerald Group Publishing Ltd.
2012
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| Online Access: | http://hdl.handle.net/20.500.11937/9374 |
| _version_ | 1848745931123458048 |
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| author | Fraser, Patricia Hoesli, M. McAlevey, L. |
| author_facet | Fraser, Patricia Hoesli, M. McAlevey, L. |
| author_sort | Fraser, Patricia |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Purpose: The purpose of this paper is to compare responses of house prices in three important markets when faced with permanent and temporary shocks to income. It additionally decomposes each historical house price series into its permanent, temporary and deterministic components. Design/methodology/approach: Using quarterly data over 1973-2008, two-variable systems of house prices and income are specified for three major house-owning economies: New Zealand (NZ), the United Kingdom (UK) and the United States of America (USA). Findings: NZ and UK housing markets are sensitive to both permanent and temporary shocks to income, while the US market reacts to temporary shocks with the permanent component having a largely insignificant role to play in house price composition. In NZ, the temporary component of house prices has tended to be positive over time, pushing prices higher than they would have been otherwise; while in the UK, both permanent and temporary components have tended to reinforce each other. Originality/value: The paper uses state-of-the-art methods to analyse the relationships between income and house prices in three economies. |
| first_indexed | 2025-11-14T06:25:11Z |
| format | Journal Article |
| id | curtin-20.500.11937-9374 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T06:25:11Z |
| publishDate | 2012 |
| publisher | Emerald Group Publishing Ltd. |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-93742017-09-13T16:06:41Z House prices, disposable income and permanent and temporary shocks: The NZ, UK and US experience Fraser, Patricia Hoesli, M. McAlevey, L. temporary shocks elasticity disposable income income prices United States of America property SVAR approach permanent shocks house prices United Kingdom New Zealand Purpose: The purpose of this paper is to compare responses of house prices in three important markets when faced with permanent and temporary shocks to income. It additionally decomposes each historical house price series into its permanent, temporary and deterministic components. Design/methodology/approach: Using quarterly data over 1973-2008, two-variable systems of house prices and income are specified for three major house-owning economies: New Zealand (NZ), the United Kingdom (UK) and the United States of America (USA). Findings: NZ and UK housing markets are sensitive to both permanent and temporary shocks to income, while the US market reacts to temporary shocks with the permanent component having a largely insignificant role to play in house price composition. In NZ, the temporary component of house prices has tended to be positive over time, pushing prices higher than they would have been otherwise; while in the UK, both permanent and temporary components have tended to reinforce each other. Originality/value: The paper uses state-of-the-art methods to analyse the relationships between income and house prices in three economies. 2012 Journal Article http://hdl.handle.net/20.500.11937/9374 10.1108/17539261211215987 Emerald Group Publishing Ltd. restricted |
| spellingShingle | temporary shocks elasticity disposable income income prices United States of America property SVAR approach permanent shocks house prices United Kingdom New Zealand Fraser, Patricia Hoesli, M. McAlevey, L. House prices, disposable income and permanent and temporary shocks: The NZ, UK and US experience |
| title | House prices, disposable income and permanent and temporary shocks: The NZ, UK and US experience |
| title_full | House prices, disposable income and permanent and temporary shocks: The NZ, UK and US experience |
| title_fullStr | House prices, disposable income and permanent and temporary shocks: The NZ, UK and US experience |
| title_full_unstemmed | House prices, disposable income and permanent and temporary shocks: The NZ, UK and US experience |
| title_short | House prices, disposable income and permanent and temporary shocks: The NZ, UK and US experience |
| title_sort | house prices, disposable income and permanent and temporary shocks: the nz, uk and us experience |
| topic | temporary shocks elasticity disposable income income prices United States of America property SVAR approach permanent shocks house prices United Kingdom New Zealand |
| url | http://hdl.handle.net/20.500.11937/9374 |