Testing the relationship between housing prices and inflation in the OECD countries

dc.contributor.authorRufai, Aliyu Akorede
dc.contributor.authorAor, Raymond Liambee
dc.contributor.authorSalisu, Afees A.
dc.date.accessioned2024-07-08T10:52:11Z
dc.date.available2024-07-08T10:52:11Z
dc.date.issued2024
dc.description.abstractPURPOSE : This study aims to construct alternative models to establish the dynamic nexus between inflation and housing prices by estimating the short- and long-run relationship between housing prices and inflation for 15 OECD countries from 1980Q1 to 2022Q4. Furthermore, the authors examined this association using the core and headline inflation and price-income and price-rent ratios as proxies for inflation and housing prices, respectively. DESIGN/METHODOLOGY/APPROACH : The authors use the panel autoregressive distributed lag technique to examine the nexus between housing prices and inflation to capture the distinct characteristics of the sample countries, estimate various short-run and long-run dynamics cum separate analyses for turbulent and calm periods in the relationship between housing prices and inflation. FINDINGS : Changes in housing prices have a greater impact on core inflation than headline inflation. Overall, the authors establish a positive (negative) relationship between housing prices and core inflation in the long run (short run) based on alternative proxies of housing prices. However, this connection tends to be less significant for headline inflation and episodic over smaller samples, as it seems stronger during calm periods than turbulent ones. ORIGINALITY/VALUE : To the best of the authors’ knowledge, the authors are the first to examine the association between housing prices and inflation by demonstrating how these variables behave during calm and turbulent periods.en_US
dc.description.departmentEconomicsen_US
dc.description.librarianhj2024en_US
dc.description.sdgSDG-01:No povertyen_US
dc.description.sdgSDG-08:Decent work and economic growthen_US
dc.description.urihttps://www.emerald.com/insight/publication/issn/1753-8270en_US
dc.identifier.citationRufai, A.A., Aor, R.L. and Salisu, A.A. (2024), "Testing the relationship between housing prices and inflation in the OECD countries", International Journal of Housing Markets and Analysis, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJHMA-02-2024-0020.en_US
dc.identifier.issn1753-8270
dc.identifier.other10.1108/IJHMA-02-2024-0020
dc.identifier.urihttp://hdl.handle.net/2263/96848
dc.language.isoenen_US
dc.publisherEmeralden_US
dc.rights© 2024, Emerald Publishing Limited.en_US
dc.subjectHousing pricesen_US
dc.subjectLong panelsen_US
dc.subjectInflationen_US
dc.subjectGlobal financial crisis (GFC)en_US
dc.subjectSDG-01: No povertyen_US
dc.subjectSDG-08: Decent work and economic growthen_US
dc.titleTesting the relationship between housing prices and inflation in the OECD countriesen_US
dc.typePostprint Articleen_US

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