The Role of Macroeconomic Fundamentals in the Determination of House Prices

Authors

  • Larry Allen Lamar University
  • Cynthia Barnes Lamar University
  • Howell Lynch Loyola University—New Orleans

Keywords:

Business, Economics, Finance, Macroeconomic, GDP

Abstract

This paper attempts to explain the variance of housing prices as a function of macroeconomic fundamentals. The analysis is based on data from six advanced countries. The sample range is from 2001-2012. A panel regression procedure is applied to the data set. The findings suggest that house prices can be interpreted as a function of macroeconomic variables. These macroeconomic variables include percentage real GDP growth, the current account and first differences in the current account as a percent of GDP, first differences in the imbalance between investment and savings, and the public debt as a percent of GDP.

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Published

2016-10-01

How to Cite

Allen, L., Barnes, C., & Lynch, H. (2016). The Role of Macroeconomic Fundamentals in the Determination of House Prices. Journal of Applied Business and Economics, 18(5). Retrieved from https://mail.articlegateway.com/index.php/JABE/article/view/865

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Section

Articles