Clustered housing cycles

Using a panel of U.S. city-level building permits data, we estimate a Markov-switching model of housing cycles that allows cities to systematically deviate from the national housing cycle. These deviations occur for clusters of cities that experience simultaneous housing contractions. We find that c...

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Main Authors: Hernandez-Murillo, Ruben, Owyang, Michael T., Rubio, Margarita
Format: Article
Published: Elsevier 2017
Subjects:
Online Access:https://eprints.nottingham.ac.uk/43653/
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author Hernandez-Murillo, Ruben
Owyang, Michael T.
Rubio, Margarita
author_facet Hernandez-Murillo, Ruben
Owyang, Michael T.
Rubio, Margarita
author_sort Hernandez-Murillo, Ruben
building Nottingham Research Data Repository
collection Online Access
description Using a panel of U.S. city-level building permits data, we estimate a Markov-switching model of housing cycles that allows cities to systematically deviate from the national housing cycle. These deviations occur for clusters of cities that experience simultaneous housing contractions. We find that cities do not form housing regions in the traditional geographic sense. Instead, similarities in factors affecting the demand for housing (such as population growth or availability of credit) appear to be more important determinants of cyclical co-movements than similarities in factors affecting the supply for land (such as the availability of developable land or the elasticity of land supply).
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spelling nottingham-436532020-05-04T19:55:47Z https://eprints.nottingham.ac.uk/43653/ Clustered housing cycles Hernandez-Murillo, Ruben Owyang, Michael T. Rubio, Margarita Using a panel of U.S. city-level building permits data, we estimate a Markov-switching model of housing cycles that allows cities to systematically deviate from the national housing cycle. These deviations occur for clusters of cities that experience simultaneous housing contractions. We find that cities do not form housing regions in the traditional geographic sense. Instead, similarities in factors affecting the demand for housing (such as population growth or availability of credit) appear to be more important determinants of cyclical co-movements than similarities in factors affecting the supply for land (such as the availability of developable land or the elasticity of land supply). Elsevier 2017-09 Article PeerReviewed Hernandez-Murillo, Ruben, Owyang, Michael T. and Rubio, Margarita (2017) Clustered housing cycles. Regional Science and Urban Economics, 66 . pp. 185-197. ISSN 0166-0462 Clustered Markov switching business cycles building permits co-movements http://www.sciencedirect.com/science/article/pii/S0166046217302272 doi:10.1016/j.regsciurbeco.2017.06.003 doi:10.1016/j.regsciurbeco.2017.06.003
spellingShingle Clustered Markov switching
business cycles
building permits
co-movements
Hernandez-Murillo, Ruben
Owyang, Michael T.
Rubio, Margarita
Clustered housing cycles
title Clustered housing cycles
title_full Clustered housing cycles
title_fullStr Clustered housing cycles
title_full_unstemmed Clustered housing cycles
title_short Clustered housing cycles
title_sort clustered housing cycles
topic Clustered Markov switching
business cycles
building permits
co-movements
url https://eprints.nottingham.ac.uk/43653/
https://eprints.nottingham.ac.uk/43653/
https://eprints.nottingham.ac.uk/43653/