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A spatio-temporal study of regional house prices in Sweden

Montelius, Marc LU and Niemelä, Markus LU (2017) NEKN01 20171
Department of Economics
Abstract
This paper uses a recently developed methodology to investigate the spatial and temporal diffusion patterns of a shock to the regional house markets in Sweden. We model the change in regional house prices such that they are allowed to be contemporaneously affected by price changes in the dominant region – Stockholm - as well as being allowed to be subject to a cointegrated relationship with its neighboring regions and Stockholm. Own lagged price effects as well as neighboring lag effects are also considered. We find that shocks to the Stockholm housing market contemporaneously affects Malmo and Gothenburg the most, leading us to believe that the relationship between regional housing markets in Sweden best can be explained by homogenous... (More)
This paper uses a recently developed methodology to investigate the spatial and temporal diffusion patterns of a shock to the regional house markets in Sweden. We model the change in regional house prices such that they are allowed to be contemporaneously affected by price changes in the dominant region – Stockholm - as well as being allowed to be subject to a cointegrated relationship with its neighboring regions and Stockholm. Own lagged price effects as well as neighboring lag effects are also considered. We find that shocks to the Stockholm housing market contemporaneously affects Malmo and Gothenburg the most, leading us to believe that the relationship between regional housing markets in Sweden best can be explained by homogenous economic conditions within the regions. (Less)
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author
Montelius, Marc LU and Niemelä, Markus LU
supervisor
organization
alternative title
A thesis about interregional house prices in the Swedish market
course
NEKN01 20171
year
type
H1 - Master's Degree (One Year)
subject
keywords
House prices, ripple effect, interregional dependence, spatial & temporal diffusion
language
English
id
8912140
date added to LUP
2017-07-10 13:53:15
date last changed
2017-07-10 13:53:15
@misc{8912140,
  abstract     = {This paper uses a recently developed methodology to investigate the spatial and temporal diffusion patterns of a shock to the regional house markets in Sweden. We model the change in regional house prices such that they are allowed to be contemporaneously affected by price changes in the dominant region – Stockholm - as well as being allowed to be subject to a cointegrated relationship with its neighboring regions and Stockholm. Own lagged price effects as well as neighboring lag effects are also considered. We find that shocks to the Stockholm housing market contemporaneously affects Malmo and Gothenburg the most, leading us to believe that the relationship between regional housing markets in Sweden best can be explained by homogenous economic conditions within the regions.},
  author       = {Montelius, Marc and Niemelä, Markus},
  keyword      = {House prices,ripple effect,interregional dependence,spatial & temporal diffusion},
  language     = {eng},
  note         = {Student Paper},
  title        = {A spatio-temporal study of regional house prices in Sweden},
  year         = {2017},
}