Metropolitan house prices in India : do they converge?
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Date
Authors
Aye, Goodness Chioma
Goswami, Samrat
Gupta, Rangan
Journal Title
Journal ISSN
Volume Title
Publisher
Euro-American Association of Economic Development Studies
Abstract
The paper examines the long-run behavior of house prices by addressing the issue of
price convergence or divergence across fifteen metropolitan cities in India. Using
available city-level quarterly data covering the period 2007-2011 and applying the Im,
Pesaran and Shin (2003) panel unit root test, it is found that relative price levels among
various metropolitan cities in India do not converge. This implies that the Law of One
Price does not hold in the Indian housing market, hence the different metropolitan
house markets operate independent to one another.
Description
Keywords
House prices, Law of one price, Price convergence, India
Sustainable Development Goals
Citation
Aye, GC, Goswami, S & Gupta, R 2013, 'Metropolitan house prices in India : do they converge?', Regional and Sectoral Economic Studies, vol. 13, pp. 1-10.