Inflation hedging property of housing market in Malaysia
This paper aims to examine the relationship between house prices and inflation to determine the inflation hedging ability of housing in Malaysian. We examine the long-run and short-run hedging ability of house prices against both consumer and energy inflation by using ARDL approach. Consumer infl...
| Main Authors: | , |
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| Other Authors: | |
| Format: | Book Section |
| Language: | English |
| Published: |
Universiti Sains Malaysia
2016
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| Subjects: | |
| Online Access: | http://eprints.usm.my/52479/ http://eprints.usm.my/52479/1/pages%20from%201-8%20iccei2016-proceedings.pdf |
| Summary: | This paper aims to examine the relationship between house prices and inflation to determine
the inflation hedging ability of housing in Malaysian. We examine the long-run and short-run
hedging ability of house prices against both consumer and energy inflation by using ARDL
approach. Consumer inflation will be calculated from consumer price index while energy
inflation is calculated from crude oil price. We find that, in the long-run, housing is a good
hedge against consumer inflation but a poor hedge against energy inflation. In the short-run,
housing is only partially hedge against energy inflation but not able to hedge against
consumer inflation. The results show that housing is not a good investment asset in Malaysia. |
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