Absolute Income Inequality and Rising House Prices

Income inequality and house prices have risen sharply in developed countries during the last three decades. We argue that this co-movement is no coincidence but that inequality has driven up house prices on the grounds that it raises the total demand for houses, which inflates their prices consideri...

Full description

Autores:
Goda, Thomas
Stewart, Chris
Torres García, Alejandro
Tipo de recurso:
Fecha de publicación:
2016
Institución:
Universidad EAFIT
Repositorio:
Repositorio EAFIT
Idioma:
eng
OAI Identifier:
oai:repository.eafit.edu.co:10784/10507
Acceso en línea:
http://hdl.handle.net/10784/10507
Palabra clave:
Personal Income Inequality
Absolute Inequality
House Prices
Asset Price Inflation
Asset Bubbles
Rights
License
Acceso abierto
id REPOEAFIT2_1ea636c7e2df61e7f0541a0e5673be6d
oai_identifier_str oai:repository.eafit.edu.co:10784/10507
network_acronym_str REPOEAFIT2
network_name_str Repositorio EAFIT
repository_id_str
spelling Medellín de: Lat: 06 15 00 N degrees minutes Lat: 6.2500 decimal degrees Long: 075 36 00 W degrees minutes Long: -75.6000 decimal degrees2016-12-16T16:16:38Z2016-12-012016-12-16T16:16:38Zhttp://hdl.handle.net/10784/10507D31G12R21Income inequality and house prices have risen sharply in developed countries during the last three decades. We argue that this co-movement is no coincidence but that inequality has driven up house prices on the grounds that it raises the total demand for houses, which inflates their prices considering supply restrictions. To test this hypothesis, we conduct cointegration tests for a panel of 18 OECD countries for the period 1975-2010. The results suggest that income inequality and house prices in most OECD countries are positively correlated and cointegrated, and that in the majority of cases absolute inequality Granger-causes house prices when measured in absolute terms. Relative inequality, on the other hand, is not cointegrated with house prices, which is expected given that total house demand depends on the absolute amount of investible income.engUniversidad EAFITEscuela de Economía y FinanzasAbsolute Income Inequality and Rising House PricesworkingPaperinfo:eu-repo/semantics/workingPaperDocumento de trabajo de investigacióndrafthttp://purl.org/coar/version/c_b1a7d7d4d402bccehttp://purl.org/coar/resource_type/c_8042Acceso abiertohttp://purl.org/coar/access_right/c_abf2Personal Income InequalityAbsolute InequalityHouse PricesAsset Price InflationAsset Bubblestgoda@eafit.edu.coatorres7@eafit.edu.coGoda, Thomas1ec44d78-f1cb-402b-a2db-9efc55622f98-1Stewart, Chrisedc6a3e6-60c4-4e4f-a6bc-903617e35b7e-1Torres García, Alejandro6000ab94-7e0b-425c-9323-66628af245f3-1LICENSElicense.txtlicense.txttext/plain; charset=utf-82556https://repository.eafit.edu.co/bitstreams/5d6e69db-1124-4d22-bc77-a75a1b5e391a/download76025f86b095439b7ac65b367055d40cMD51ORIGINALWP-2016-31 Thomas Goda.pdfWP-2016-31 Thomas Goda.pdfDocumento de trabajo de investigaciónapplication/pdf1059452https://repository.eafit.edu.co/bitstreams/cee89d51-2bba-432b-95c4-c893c3c0a821/downloadd9a48f8ee5d74cb8855ef1f595423c5dMD5210784/10507oai:repository.eafit.edu.co:10784/105072024-12-04 11:50:14.513open.accesshttps://repository.eafit.edu.coRepositorio Institucional Universidad EAFITrepositorio@eafit.edu.co
dc.title.eng.fl_str_mv Absolute Income Inequality and Rising House Prices
title Absolute Income Inequality and Rising House Prices
spellingShingle Absolute Income Inequality and Rising House Prices
Personal Income Inequality
Absolute Inequality
House Prices
Asset Price Inflation
Asset Bubbles
title_short Absolute Income Inequality and Rising House Prices
title_full Absolute Income Inequality and Rising House Prices
title_fullStr Absolute Income Inequality and Rising House Prices
title_full_unstemmed Absolute Income Inequality and Rising House Prices
title_sort Absolute Income Inequality and Rising House Prices
dc.creator.fl_str_mv Goda, Thomas
Stewart, Chris
Torres García, Alejandro
dc.contributor.eafitauthor.none.fl_str_mv tgoda@eafit.edu.co
atorres7@eafit.edu.co
dc.contributor.author.none.fl_str_mv Goda, Thomas
Stewart, Chris
Torres García, Alejandro
dc.subject.keyword.spa.fl_str_mv Personal Income Inequality
Absolute Inequality
House Prices
Asset Price Inflation
Asset Bubbles
topic Personal Income Inequality
Absolute Inequality
House Prices
Asset Price Inflation
Asset Bubbles
description Income inequality and house prices have risen sharply in developed countries during the last three decades. We argue that this co-movement is no coincidence but that inequality has driven up house prices on the grounds that it raises the total demand for houses, which inflates their prices considering supply restrictions. To test this hypothesis, we conduct cointegration tests for a panel of 18 OECD countries for the period 1975-2010. The results suggest that income inequality and house prices in most OECD countries are positively correlated and cointegrated, and that in the majority of cases absolute inequality Granger-causes house prices when measured in absolute terms. Relative inequality, on the other hand, is not cointegrated with house prices, which is expected given that total house demand depends on the absolute amount of investible income.
publishDate 2016
dc.date.available.none.fl_str_mv 2016-12-16T16:16:38Z
dc.date.issued.none.fl_str_mv 2016-12-01
dc.date.accessioned.none.fl_str_mv 2016-12-16T16:16:38Z
dc.type.eng.fl_str_mv workingPaper
info:eu-repo/semantics/workingPaper
dc.type.coarversion.fl_str_mv http://purl.org/coar/version/c_b1a7d7d4d402bcce
dc.type.coar.fl_str_mv http://purl.org/coar/resource_type/c_8042
dc.type.local.spa.fl_str_mv Documento de trabajo de investigación
dc.type.hasVersion.eng.fl_str_mv draft
dc.identifier.uri.none.fl_str_mv http://hdl.handle.net/10784/10507
dc.identifier.jel.none.fl_str_mv D31
G12
R21
url http://hdl.handle.net/10784/10507
identifier_str_mv D31
G12
R21
dc.language.iso.eng.fl_str_mv eng
language eng
dc.rights.coar.fl_str_mv http://purl.org/coar/access_right/c_abf2
dc.rights.local.spa.fl_str_mv Acceso abierto
rights_invalid_str_mv Acceso abierto
http://purl.org/coar/access_right/c_abf2
dc.coverage.spatial.eng.fl_str_mv Medellín de: Lat: 06 15 00 N degrees minutes Lat: 6.2500 decimal degrees Long: 075 36 00 W degrees minutes Long: -75.6000 decimal degrees
dc.publisher.spa.fl_str_mv Universidad EAFIT
dc.publisher.department.spa.fl_str_mv Escuela de Economía y Finanzas
institution Universidad EAFIT
bitstream.url.fl_str_mv https://repository.eafit.edu.co/bitstreams/5d6e69db-1124-4d22-bc77-a75a1b5e391a/download
https://repository.eafit.edu.co/bitstreams/cee89d51-2bba-432b-95c4-c893c3c0a821/download
bitstream.checksum.fl_str_mv 76025f86b095439b7ac65b367055d40c
d9a48f8ee5d74cb8855ef1f595423c5d
bitstream.checksumAlgorithm.fl_str_mv MD5
MD5
repository.name.fl_str_mv Repositorio Institucional Universidad EAFIT
repository.mail.fl_str_mv repositorio@eafit.edu.co
_version_ 1818102436512923648

Publicaciones similares