Skip to main content

Research Repository

Advanced Search

Clustered housing cycles

Hernandez-Murillo, Ruben; Owyang, Michael T.; Rubio, Margarita

Authors

Ruben Hernandez-Murillo Ruben.Hernandez-Murillo@clev.frb.org

Michael T. Owyang Owyang@stls.frb.org



Abstract

Using a panel of U.S. city-level building permits data, we estimate a Markov-switching model of housing cycles that allows cities to systematically deviate from the national housing cycle. These deviations occur for clusters of cities that experience simultaneous housing contractions. We find that cities do not form housing regions in the traditional geographic sense. Instead, similarities in factors affecting the demand for housing (such as population growth or availability of credit) appear to be more important determinants of cyclical co-movements than similarities in factors affecting the supply for land (such as the availability of developable land or the elasticity of land supply).

Journal Article Type Article
Publication Date Sep 1, 2017
Journal Regional Science and Urban Economics
Print ISSN 0166-0462
Electronic ISSN 0166-0462
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 66
APA6 Citation Hernandez-Murillo, R., Owyang, M. T., & Rubio, M. (2017). Clustered housing cycles. Regional Science and Urban Economics, 66, https://doi.org/10.1016/j.regsciurbeco.2017.06.003
DOI https://doi.org/10.1016/j.regsciurbeco.2017.06.003
Keywords Clustered Markov switching, business cycles, building permits, co-movements
Publisher URL http://www.sciencedirect.com/science/article/pii/S0166046217302272
Copyright Statement Copyright information regarding this work can be found at the following address: http://eprints.nottingh.../end_user_agreement.pdf

Files

els_revision_housing_cycles_rhm_mto (1).pdf (2.7 Mb)
PDF

Copyright Statement
Copyright information regarding this work can be found at the following address: http://eprints.nottingham.ac.uk/end_user_agreement.pdf





You might also like



Downloadable Citations

;