Open AccessInternational Real Estate Review
Author(s) -
Charles Ka Yui Leung,
Kelvin S.K. Wong,
Patrick Wai Yin Cheung
Publication year - 2007
Publication title -
journal of the asian real estate society
Language(s) - English
Resource type - Journals
ISSN - 1029-6131
DOI - 10.53383/100084
Subject(s) - real estate , economics , aggregate (composite) , econometrics , database transaction , set (abstract data type) , structural break , computer science , finance , materials science , composite material , programming language
Given the dramatic fluctuations in aggregate housing prices, this paper attempts to examine whether the implicit prices of different housing attributes are “stable.” Theoretically, this paper provides perhaps the first dynamic, general equilibrium model in which housing attributes’ implicit prices fluctuate. Empirically, this paper models the time paths of different implicit prices as auto-regressive processes by employing a hedonic pricing model on a large set of housing transaction data over a relatively long period of time. An endogenous structural break test is then performed. Except for a few attributes, structural breaks are not detected. Directions for future research are discussed.