Testing for long-run convergence across regional house prices in the UK: A pairwise approach

Andrew Abbott, Glauco De Vita

Research output: Contribution to journalArticle

22 Citations (Scopus)

Abstract

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.
Original languageEnglish
Pages (from-to)1227-1238
Number of pages12
JournalApplied Economics
Volume45
Issue number10
DOIs
Publication statusPublished - 2013

Fingerprint

House prices
Regional convergence
Testing
Unit root tests
Stochastic convergence
Benchmark

Keywords

  • Regional convergence
  • House prices
  • Housing market
  • Pairwise approach

Cite this

Testing for long-run convergence across regional house prices in the UK : A pairwise approach. / Abbott, Andrew; De Vita, Glauco.

In: Applied Economics, Vol. 45, No. 10, 2013, p. 1227-1238.

Research output: Contribution to journalArticle

@article{8d2186c8ab5b4598846265b55e4c40b6,
title = "Testing for long-run convergence across regional house prices in the UK: A pairwise approach",
abstract = "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.",
keywords = "Regional convergence, House prices, Housing market, Pairwise approach",
author = "Andrew Abbott and {De Vita}, Glauco",
year = "2013",
doi = "10.1080/00036846.2011.613800",
language = "English",
volume = "45",
pages = "1227--1238",
journal = "Applied Financial Economics",
issn = "0003-6846",
publisher = "Routledge",
number = "10",

}

TY - JOUR

T1 - Testing for long-run convergence across regional house prices in the UK

T2 - A pairwise approach

AU - Abbott, Andrew

AU - De Vita, Glauco

PY - 2013

Y1 - 2013

N2 - 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.

AB - 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.

KW - Regional convergence

KW - House prices

KW - Housing market

KW - Pairwise approach

U2 - 10.1080/00036846.2011.613800

DO - 10.1080/00036846.2011.613800

M3 - Article

VL - 45

SP - 1227

EP - 1238

JO - Applied Financial Economics

JF - Applied Financial Economics

SN - 0003-6846

IS - 10

ER -