scholarly journals Assessing the impacts of Airbnb listings on London house prices

2021 ◽  
pp. 239980832110018
Author(s):  
James Todd ◽  
Anwar Musah ◽  
James Cheshire
Keyword(s):  
Random Effects ◽  
Rapid Growth ◽  
House Prices ◽  
Housing Prices ◽  
House Price ◽  
Positive Association ◽  
Sharing Economy ◽  
Local Context ◽  
Fixed And Random Effects ◽  
The World

Over the course of the last decade, sharing economy platforms have experienced significant growth within cities around the world. Airbnb, which is one of the largest and best-known platforms, provides the focus for this paper and offers a service that allows users to rent properties or spare rooms to guests. Its rapid growth has led to a growing discourse around the consequences of Airbnb rentals within the local context. The research within this paper focuses on determining impact on local housing prices within the inner London boroughs by constructing a longitudinal panel dataset, on which a fixed and random effects regression was conducted. The results indicate that there is a significant and modest positive association between the frequency of Airbnb and the house price per square metre in these boroughs.

scholarly journals The role and significance of planning in the determination of house prices in Australia: Recent policy debates

2021 ◽  
pp. 0308518X2198894
Author(s):  
Peter Phibbs ◽  
Nicole Gurran
Keyword(s):  
Land Use ◽  
Housing Market ◽  
Land Use Planning ◽  
House Prices ◽  
Housing Prices ◽  
House Price ◽  
Evidence Base ◽  
Urban Housing ◽  
Price Inflation ◽  
Depth Analysis

On the world stage, Australian cities have been punching above their weight in global indexes of housing prices, sparking heated debates about the causes of and remedies for, sustained house price inflation. This paper examines the evidence base underpinning such debates, and the policy claims made by key commentators and stakeholders. With reference to the wider context of Australia’s housing market over a 20 year period, as well as an in depth analysis of a research paper by Australia’s central Reserve Bank, we show how economic theories commonly position land use planning as a primary driver of new supply constraints but overlook other explanations for housing market behavior. In doing so, we offer an alternative understanding of urban housing markets and land use planning interventions as a basis for more effective policy intervention in Australian and other world cities.

scholarly journals Sars-Cov-2 in Argentina: Lockdown, Mobility, and Contagion

2020 ◽  
Author(s):  
Juan M.C. Larrosa
Keyword(s):  
Panel Data ◽  
Granger Causality ◽  
Random Effects ◽  
Social Costs ◽  
Political Discussion ◽  
Fixed And Random Effects ◽  
The World ◽  
Causality Tests ◽  
Granger Causality Tests ◽  
Over Time

AbstractThere is a debate in Argentina about the effectiveness of mandatory lockdown measures in containing COVID-19 that lasts five months making it one of the longest in the World. The population effort to comply the lockdown has been decreasing over time given the economic and social costs that it entails. We contributes by analyzing the Argentinian case through information of mobility and contagion given answers to recurrent questions on these topics. This paper aims to fill the gap in the literature by assessing the effects of lockdown measures and the regional relaxation on the numbers of rate of new infections. We also respond to issues of internal political discussion on regional contagion and the effect of marches and unexpected crowd events. We use pool, fixed and random effects panel data modeling and Granger causality tests identifying relations between mobility and contagion. Our results show that lockdown in Argentina has been effective in reducing the mobility but not in way that reduces the rate of contagion. Strict lockdown seems to be effective in short periods of time and by extend it without complementary measures loss effectiveness. Contagion rate seems to be discretely displaced in time and resurging amidst slowly increasing in mobility.

scholarly journals Liquidity, interest rates and house prices in the euro area: a DSGE analysis

2016 ◽  
Vol 9 (1) ◽  
pp. 4-25 ◽  
Author(s):  
Margarita Rubio ◽  
José A. Carrasco-Gallego
Keyword(s):  
Interest Rates ◽  
Monetary Union ◽  
Euro Area ◽  
House Prices ◽  
Housing Prices ◽  
House Price ◽  
Dsge Model ◽  
Content Type ◽  
The Core ◽  
Dynamic Stochastic

Purpose This study aims to build a two-country monetary union dynamic stochastic general equilibrium (DSGE) model with housing to assess how different shocks contributed to the increase in housing prices and credit in the European Economic and Monetary Union. One of the countries is calibrated to represent the core group in the euro area, while the other one corresponds to the periphery. Design/methodology/approach In this paper, the authors explore how a liquidity shock (or a decrease in the interest rate) affects house prices and the real economy through the asset price and the collateral channel. Then, they analyze how a house price shock in the periphery and a technology shock in the core countries are transmitted to both economies. Findings The authors find that a combination of an increase in liquidity in the euro area coming from the common monetary policy, together with asymmetric house price and technology shocks, contributed to an increase in house prices in the euro area and a stronger credit growth in the peripheral economies. Originality/value This paper represents the theoretical counterpart to empirical studies that show, through macroeconometric models, the interrelation between liquidity and other shocks with house prices. Using a DSGE model with housing, the authors disentangle the mechanisms behind these empirical findings.

scholarly journals Untangling the nonlinear “knots” of UK’s housing prices

2019 ◽  
Vol 46 (5) ◽  
pp. 1083-1103
Author(s):  
Constantinos Alexiou ◽  
Sofoklis Vogiazas
Keyword(s):  
Housing Market ◽  
House Prices ◽  
Housing Prices ◽  
Positive Association ◽  
Research Area ◽  
Content Type ◽  
Nonlinear Ardl ◽  
Long Run ◽  
Short Run ◽  
The Uk

Purpose Housing prices in the UK offer an inspiring, yet a complex and under-explored research area. The purpose of this paper is to investigate the critical factors that affect UK’s housing prices. Design/methodology/approach The authors utilize the recently developed nonlinear ARDL approach of Shin et al. (2014) over the period 1969–2016. Findings The authors find that both the long-run and short-run impact of the price-to-rent (PTR) ratio and credit-to-GDP ratio on house prices (HP) is asymmetric whilst ambiguous results are established for mortgage rates, industrial production and equities. Apart from the novel framework of analysis, this study also establishes a positive association between HP and the PTR ratio which suggests a speculative behaviour and could imply the formation of a housing bubble. Originality/value It is the first study for the UK housing market that explores the underlying fundamental relationships by looking at nonlinearities hence, allowing HP to be tied by asymmetric relationships in the long as well as in the short run. Modelling the inherent nonlinearities enhances significantly the understanding of UK housing market which can prove useful for policymaking and forecasting purposes.

scholarly journals A dynamic model for housing price spillovers with an evidence from the US and the UK markets

2018 ◽  
Vol 2 (1) ◽  
pp. 70-81 ◽  
Author(s):  
Alper Ozun ◽  
Hasan Murat Ertugrul ◽  
Yener Coskun
Keyword(s):  
New York ◽  
Real Estate ◽  
House Prices ◽  
Housing Prices ◽  
House Price ◽  
Housing Markets ◽  
Content Type ◽  
Real Estate Markets ◽  
Country Level ◽  
The Us

Purpose The purpose of this paper is to introduce an empirical model for house price spillovers between real estate markets. The model is presented by using data from the US-UK and London-New York housing markets over a period of 1975Q1-2016Q1 by employing both static and dynamic methodologies. Design/methodology/approach The research analyzes long-run static and dynamic spillover elasticity coefficients by employing three methods, namely, autoregressive distributed lag, the fully modified ordinary least square and dynamic ordinary least squares estimator under a Kalman filter approach. The empirical method also investigates dynamic correlation between the house prices by employing the dynamic control correlation method. Findings The paper shows how a dynamic spillover pricing analysis can be applied between real estate markets. On the empirical side, the results show that country-level causality in housing prices is running from the USA to UK, whereas city-level causality is running from London to New York. The model outcomes suggest that real estate portfolios involving US and UK assets require a dynamic risk management approach. Research limitations/implications One of the findings is that the dynamic conditional correlation between the US and the UK housing prices is broken during the crisis period. The paper does not discuss the reasons for that break, which requires further empirical tests by applying Markov switching regime shifts. The timing of the causality between the house prices is not empirically tested. It can be examined empirically by applying methods such as wavelets. Practical implications The authors observed a unidirectional causality from London to New York house prices, which is opposite to the aggregate country-level causality direction. This supports London’s specific power in the real estate markets. London has a leading role in the global urban economies residential housing markets and the behavior of its housing prices has a statistically significant causality impact on the house prices of New York City. Social implications The house price co-integration observed in this research at both country and city levels should be interpreted as a continuity of real estate and financial integration in practice. Originality/value The paper is the first research which applies a dynamic spillover analysis to examine the causality between housing prices in real estate markets. It also provides a long-term empirical evidence for a dynamic causal relationship for the global housing markets.

scholarly journals Homeownership Rate and Other House Price Determinants Impacts on New House Prices in Colombia

2020 ◽  
pp. 35-50
Author(s):  
Hector Botello-Peñaloza
Keyword(s):  
Real Estate ◽  
House Prices ◽  
Housing Prices ◽  
House Price ◽  
Real Estate Market ◽  
The Real Estate ◽  
Homeownership Rate ◽  
Colombian Government ◽  
Price Determinants ◽  
Price Instability

Homeownership remains a preferred form of tenancy in different parts of the world. The attractions of security, stability, investment potential and a sense of pride outweigh the fear of price instability. For this reason, the Colombian government has encouraged in recent years, various demand policies that have sought to promote the increase in the number of homeowners. However, these ideas could have a severe impact on prices in the real estate market. Therefore, this study seeks to examine the effect of homeownership rate on new house prices in an emerging country with low real estate ownership, credit restrictions and average per capita income. The study uses panel data model to examine the influence of housing tenancy and other variables on the variation of housing prices in Colombia. Data were obtained from various sources including the Central Bank of Colombia, Financial Superintendence of Colombia, and National Administrative Department of Statistics of Colombia. The results show that homeownership rates have a positive effect on the price of new homes, which supports the hypothesis of the research. The population growth of the cities is the factor that is most relevant when explaining the price variations.

scholarly journals COMPARATIVE ANALYSIS OF THE IMPACT OF GLOBALISATION ON HUMAN WELFARE IN SUB-SAHARAN AFRICA

10.23856/3002 ◽  
2018 ◽  
Vol 30 (5) ◽  
pp. 25-42
Author(s):  
Olukayode Emmanuel Maku ◽  
Bolaji Adesola Adesoye ◽  
Awoyemi Olayiwola Babasanya ◽  
Oluwaseyi Adedayo Adelowokan
Keyword(s):  
Comparative Analysis ◽  
Random Effects ◽  
Trade Openness ◽  
Sub Saharan Africa ◽  
Human Welfare ◽  
Fixed And Random Effects ◽  
The World ◽  
Sub Saharan ◽  
The Impact ◽  
Ssa Countries

The world has become more linked owing to the increased intensity of globalisation across regions. Sub-Saharan Africa (SSA) has become more relatively integrated into the world economy as shown by increasing degree of trade openness and foreign direct investment. Over the same period, quality of life of people in SSA in terms of access to basic necessity, monetary and non-monetary indices of poverty have been on the declining trend. This study adopted endogenous growth theory in analysing the comparative effects of globalisation between the highly and weakly globalised economies in SSA countries. Four channels of transmission of impact of globalisation were considered: trade openness, financial and capital flows labour mobility and access to telephone. Data for 16 SSA countries – 8 weakly globalised and 8 strongly globalised countries based on KOF globalisation index, were sourced from the world Development indicator for the period of 1980-2012. The feasible generalised least square (GLS) estimator was utilized to estimate the fixed and random effects panel regression models. Hausman test was used to determine the efficient estimator between fixed and random effects. All estimated coefficients were evaluated at 5% level of significance. The outcome of the comparative analysis revealed a mix result in some cases and unidirectional in some. In all, countries with higher intensity of globalisation have a greater improvement in their human welfare indicators compared to countries with weak globalisation indices. The study then recommended an improved reform in global integration to enable the region maximize the immense benefits inherent in global connections.

scholarly journals House Price Convergence on the Primary and Secondary Markets: Evidence from Polish Provincial Capitals

2019 ◽  
Vol 27 (4) ◽  
pp. 62-73 ◽  
Author(s):  
Mateusz Tomal
Keyword(s):  
Driving Forces ◽  
House Prices ◽  
Housing Prices ◽  
House Price ◽  
Secondary Markets ◽  
Factors Affecting ◽  
Long Run ◽  
Convergence Clubs ◽  
Shape Pattern ◽  
Convergence Model

Abstract The aim of this study is to identify whether there is a common house price trend across provincial capitals in Poland. The log t regression is the main method of analysis. Additionally, traditional convergence tests based on the concepts of β- and σ-convergence are used. The obtained results indicate that the cities do not share a common price in the long-run. There are, however, convergence clubs on both primary and secondary markets. In each club, house prices across cities tend to converge to their own steady state. Moreover, research on the driving forces of convergence reports that factors affecting housing prices differ among the clubs. Therefore, policymakers should adjust housing policies in accordance with the characteristics of a given club. In turn, the σ-convergence model demonstrated a very interesting finding, namely, a U-shape pattern of convergence, both on the primary and secondary markets. This pattern is strictly correlated with the level of prices on the markets.

Housing Prices and Money Demand: Empirical Evidence in Selected MENA Countries

2019 ◽  
Vol 15 (1) ◽  
Author(s):  
Nadia Mbazia ◽  
Mouldi Djelassi
Keyword(s):  
Money Demand ◽  
House Prices ◽  
Housing Prices ◽  
House Price ◽  
Structural Features ◽  
Demand Model ◽  
Mena Countries ◽  
Long Run ◽  
Short Run ◽  
Dynamic Relationships

Abstract This paper examines the links between housing and money empirically in a money demand framework for a panel of five Middle East and North Africa (MENA) countries using quarterly data from 2007Q3 to 2014Q4 with the inclusion of house prices as a variable representing the developments in housing markets. We applied the Pool Mean Group Estimation technique to estimate the long-run and short-run dynamic relationships in money demand model. Empirical results provide the evidence that higher house prices lead to a rise in M2 demand in long-run and short-run estimations. This finding may explain the importance influence of the house price developments on monetary policy in MENA countries. The results confirm that the cross-country heterogeneity of money holdings is also connected with structural features of the housing market.

Asymmetric sensitivities of house prices to housing fundamentals: evidence from UK regions

2019 ◽  
Vol 12 (3) ◽  
pp. 442-455 ◽  
Author(s):  
Huthaifa Alqaralleh
Keyword(s):  
House Prices ◽  
Housing Prices ◽  
House Price ◽  
Housing Affordability ◽  
Star Model ◽  
Content Type ◽  
Macroeconomic Variables ◽  
North West ◽  
Country Level ◽  
The North

Purpose This paper aims to examine asymmetries in the house price cycle and to understand the dynamic of housing prices, incorporating macroeconomic variables at regional and country level, namely, housing affordability, the unemployment rate, mortgage rate and inflation rate. Design/methodology/approach To highlight significant differences in the asymmetric patterns of house prices between regions, the STAR model is adopted. Findings The authors highlight significant differences in the asymmetric patterns of house prices between regions, in which some areas showed asymmetric response over the housing cycle; here the LSTAR model outperforms other models. In contrast, some regions (the South West and the North West) showed symmetric properties in the tails of the cycle; therefore, the ESTAR model was adopted in their case. Practical implications Being limited to a few fundamentals, this study opens an avenue for further research to investigate this dynamic using in addition such demand-supply factors as land supply, construction cost and loans made for housing. These findings can also be used to examine whether other models such as ARIMA, exponential smoothing or artificial neural networks can more accurately forecast housing prices. Originality/value The present paper aims to highlight housing affordability as a cause of asymmetric behaviour in house prices. Put differently, the authors seek to understand the dynamics of housing prices with other fundamentals incorporating macroeconomic variables in regions and country level data as a means of achieving a more concise result.

Sign in / Sign up

Export Citation Format

Share Document