This article tests for stochastic convergence in UK regional house prices using the recently developed pairwise approach. This approach allows for unit root tests to be conducted on all N(N − 1)/2 possible pairs of house price differentials across N regions in the UK, thus avoiding the need to choose a base region or alternative national figure as the benchmark. Using mix adjusted house price data from 1973:Q4 to 2008:Q4, the main finding is that there is no evidence of long run convergence among regional house prices or of an equilibrium relationship towards which UK regional house prices have a tendency to gravitate.
- Regional convergence
- House prices
- Housing market
- Pairwise approach
Abbott, A., & De Vita, G. (2013). Testing for long-run convergence across regional house prices in the UK: A pairwise approach. Applied Economics, 45(10), 1227-1238. https://doi.org/10.1080/00036846.2011.613800