Abstract
Most studies that have examined the relationship between the housing market and the macroeconomy have focused on how changes in housing supply affect real activity and the like. In this paper, the possibility that housing starts respond to sudden changes or shocks to macroeconomic factors is explicitly accounted for. The empirical methodology employs the recently developed technique of generalized impulse response analysis Pesaran and Shin (1998). The results highlight the endogeneity that exists among the housing market and macroeconomic activity.
Original language | English |
---|---|
Pages (from-to) | 187-190 |
Number of pages | 4 |
Journal | Applied Economics Letters |
Volume | 12 |
Issue number | 3 |
DOIs | |
State | Published - Feb 20 2005 |