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Asymmetric Behaviour of Spanish Regional House Prices

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Abstract

In connection with the housing market, which is presently raising a great deal of concern among the general public, this paper investigates regional housing prices in Spain using variable co-integration techniques. It analyzes the asymmetric behavior in real house prices among the Spanish regions focusing on the study of the long-term relationships over time. This paper raises an important question of the national averages masking important regional asymmetries. Results indicate evidence of co-integration, which suggests a broad grouping of regions based on physical proximity or similar economic characteristics.

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Notes

  1. Housing Department (in US) or Housing Ministry (in UK)

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Acknowledgements

This research was partially supported by the Junta de Comunidades de Castilla-La Mancha, under FEDER research project PAI-05-021. The authors are gratefully acknowledged to Jose-Maria Montero for their valuable comments. The authors are responsible for any remaining errors.

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Authors and Affiliations

  1. Faculty of Social and Law Sciences, Castilla-La Mancha University, Toledo, Spain

    Beatriz Larraz-Iribas

  2. Faculty of Economics, Castilla-La Mancha University, Albacete, Spain

    Jose-Luis Alfaro-Navarro

  3. Facultad de Ciencias Jurídicas y Sociales, Universidad de Castilla-La Mancha, 45071, Toledo, Spain

    Beatriz Larraz-Iribas

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  1. Beatriz Larraz-Iribas
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  2. Jose-Luis Alfaro-Navarro
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Correspondence to Beatriz Larraz-Iribas.

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Larraz-Iribas, B., Alfaro-Navarro, JL. Asymmetric Behaviour of Spanish Regional House Prices. Int Adv Econ Res 14, 407–421 (2008). https://doi.org/10.1007/s11294-008-9166-7

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