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

• Autores: Andros Gregoriou, Alexandros Kontonikas, Alberto Montagnoli
• Localización: Urban Studies, ISSN-e 1360-063X, Vol. 51, Nº. 13, 2014, págs. 2916-2917
• Idioma: inglés
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• Resumen

  • 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.