Aggregate and regional house price to earnings ratio dynamics in the UK

Andros Gregoriou, Alexandros Kontonikas, Alberto Montagnoli

Research output: Contribution to journalArticle

Abstract

This paper examines the time-series properties of house price to earnings ratio (HPER) in the UK using aggregate and regional data. Specifically, we utilise a series of unit root tests to examine the null hypothesis of nonstationary HPERs. These include linear tests as well as a nonlinear test and also a test which accounts for abrupt structural change. The results are against the notion of stationary HPERs. This implies that house prices may permanently diverge from earnings.
Original languageEnglish
JournalUrban Studies
Volume51
Issue number13
DOIs
Publication statusPublished - 26 Sep 2013

Keywords

  • economics
  • housing
  • methods
  • time series
  • unit root test

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