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Modelling Regional House Prices in the UK
Author(s) -
Ashworth John,
Parker Simon C.
Publication year - 1997
Publication title -
scottish journal of political economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.4
H-Index - 46
eISSN - 1467-9485
pISSN - 0036-9292
DOI - 10.1111/1467-9485.00055
Subject(s) - welsh , cointegration , house price , economics , econometrics , economic geography , macroeconomics , geography , archaeology
Maximum likelihood cointegration methods are used to analyse the determinants of house prices in each of the eleven regions of the UK. Broad similarities in the structure of house price equations are found across regions in England and Wales (but not Scotland or Northern Ireland), indicating that the source of differences in English and Welsh regional house prices should probably be sought in different regional incomes, opportunity costs, and housing starts. Tests of spatial dependence in regional house prices cast doubt on the well‐known ‘ripple effect’ hypothesis.