•We investigate the change in U.S. home prices after the Fukushima nuclear accident.•We use a diff-in-diff approach to analyze monthly zip code level home prices.•We find that home prices close to ...nuclear reactors did not fall relative to prices at other locations.•Our results suggest that individuals did not consider locations close to nuclear sites to be more risky after Fukushima.
Did the nuclear catastrophe at Fukushima in March 2011 cause individuals to reappraise the risks they attach to nuclear power plants? We investigate the change in home prices in the U.S. after the Fukushima event to test the hypothesis that home prices in the proximity of power plants fell due to an updated nuclear risk perception. Using a difference-in-differences approach, we do not find evidence in support of the hypothesis that individuals reappraised the risks associated with nuclear power plants. According to our results home prices close to nuclear reactor sites did not fall relative to home prices at other locations in the U.S.
Using the non-parametric rank tests proposed by Breitung (2001), we set out in this study to determine whether any non-linear long-run equilibrium relationship exists between the stock and real ...estate markets of Western European countries. We go on to adopt the threshold error-correction model (TECM) to determine whether a similar relationship is discernible possibly non-linear functions of the log-price of these two markets. The findings clearly point to the existence of long-run unidirectional and bidirectional causality between the real estate market and the stock market in regions both above and below the threshold level. Finally, we find the existence of both wealth and credit price effects in the real estate markets and stock markets of Western European countries, which thereby offer financial institutions and individual investors in their construction of long-term investment portfolios within these two asset markets.
► This study to determine whether any non-linear long-run equilibrium relationship exists between the stock and real estate markets of Western European countries. ► The findings clearly point to the existence of long-run unidirectional and bidirectional causality between the real estate market and the stock market in regions both above and below the threshold level. ► The existence of both wealth and credit price effects in the real estate markets and stock markets of Western European countries, which offers financial institutions and individual investors in their construction of long-term investment portfolios within these two asset markets.
The aim of this article is to show the accessibility of real estate by transportation as a factor that significantly determines the decision to acquire it. Direct access to a public road, or access ...to an internal road that provides communication with the public road, are a factor affecting the value of real estate. In addition, this factor is taken into account in the process of changing the function of the area, especially in determining zoning and land use. The decision of purchasing real estate often depends on transportation accessibility, because it has an impact on developing the selected plot.
Suburban real estate markets, as markets exposed to particularly strong investment pressure, develop depending on the influx of external investors and the local transportation network. Here, the smaller the distance from the city center, the greater the building concentration; nevertheless, it is still important to improve transportation links and create a well-developed local transportation network. The provision of access to main roads on the rapidly growing market is in the interest of local authorities implementing spatial policy. It is also a challenge for real estate investors taking on the initiative in the scope of transforming land use.
The analysis of the impact that transportation accessibility has on the development of the real estate market was conducted on the example of two selected suburban communes bordering the city of Olsztyn - Dywity and Stawiguda. Transactions on the local real estate market entered into during a period of five years were subjected to analysis. The results of the research revealed concentrations of transactions of real estate located on the outskirts of the city or in areas well-communicated with Olsztyn. The conducted research also indicates that, due to the activity of investors, a network of internal roads creating a complex structure was formed.
Using large samples of estate tax returns, we construct new series on wealth concentration in Paris and France from 1807 to 1994. Inequality increased until 1914 because industrial and financial ...estates grew dramatically. Then, adverse shocks, rather than a Kuznets-type process, led to a massive decline in inequality. The very high wealth concentration prior to 1914 benefited retired individuals living off capital income (rentiers) rather than entrepreneurs. The very rich were in their seventies and eighties, whereas they had been in their fifties a half century earlier and would be so again after World War II. Our results shed new light on ongoing debates about wealth inequality and growth.
Real estate markets are complex both in terms of structure and dynamics: they are both influenced by and influence almost all aspects of the economy and are equally vulnerable to the shocks ...experienced by the broader economy. Therefore, understanding the extent and nature of the impact of large-scale disruptive events such as natural disasters and economic financial downturns on the real estate market is crucial to policy makers and market stakeholders. In addition to anticipating and preparing for long-term effects, it has become imperative for stakeholders to monitor and manage the short-term effects as well due to the emergence of ‘PropTech’ and ‘platform real estate’. In this work, we explore the use of online, real-time dashboards which have been used extensively in the context of urban management, policymaking, citizen engagement and disaster response as an appropriate tool for the purpose of monitoring real estate markets. We describe the process of designing, building, and maintaining an operational dashboard for monitoring the residential real estate market in Australia during the COVID-19 pandemic in 2020. We detail the techniques and methods used in creating the dashboard and critically evaluate their feasibility and usefulness. Finally, we identify the major challenges in the process, such as the spatial and temporal availability and veracity of the real estate market data, and we identify possible avenues for consistent, high-quality data; methodology; and outputs for further research.
Using spatial regression models, we detect determinants of farmland’s prices in a rural area located in the upper Treviso plain (Veneto region, Italy). Econometric analysis is based on a Spatial ...linear regression model able to account for spatial lags in the data. Estimates show which intrinsic and extrinsic characteristics have the greatest influence on price, and how buyers and sellers’ profiles also matter on the price determination. Our application fosters spatial regression models in rural real estate market analysis and appraisal, and highlights that in the area under study the farmland’s prices are significantly affected by factors that are rarely considered in the literature, such as sellers and buyers’ profiles, the land use in the context where the sold plot is located matters, the hydraulic risk of the area and the presence of large infrastructures.
Purpose
This study aims to empirically examine the relationship between real estate and stock market of Pakistan.
Design/methodology/approach
The data of two real estate indices (house price index ...and plot price index) are taken for the Pakistan and its four big cities, i.e. Lahore, Karachi, Rawalpindi and Islamabad. It estimates the integration between series by applying the Johansen cointegration test. Moreover, the vector error correction model is applied to examine the short and long-run causal relationships between series.
Findings
The findings show that the real estate markets are cointegrated with the stock market. They imply that the real estate and stock markets are good substitutes in investment allocation, but investors cannot get the benefit of diversification by making a portfolio of real estate and stock markets in Pakistan. Moreover, the long-run causality is observed from majority house markets to the stock market, whereas short-run causality is evident from majority plot markets to the stock market. Hence, the real estate market leads the stock market in the short run and long run, suggesting the credit-price effect in the majority of real estate markets in Pakistan. These causality results are helpful for investors in the forecasting of real estate and stock markets in Pakistan.
Research limitations/implications
The limitation of the study is the lower number of observations (107), because house and land prices are only available in monthly frequency from January 2011 in Pakistan.
Originality/value
To the best of the authors’ knowledge, no researcher has investigated the real estate and stock market nexus in Pakistan. Therefore, this study focuses on examining the relationship between the real estate and stock market of Pakistan. The link between real estate and stock markets will provide useful insights to the portfolio managers, real estate companies, property agents, stockbrokers and investors.
Quantile hedonic house price function estimates imply that appreciation rates were higher between 1995 and 2005 for high-priced homes in Chicago. Decompositions of temporal changes in the house price ...distribution suggest that the types of homes sold and their location do not account for the change in the price distribution. Rather, higher appreciation rates for high-priced homes are explained by differences in the quantile regression coefficients over time.
Purpose - The Purpose - of the paper is to examine the differences in the impact of financial stress in advanced and emerging economies. Design/methodology/approach The authors employ a panel vector ...autoregression model (PVAR) for a comparative analysis of the relationship between financial stress, economic growth and monetary stability in 14 advanced and emerging economies. A homogeneous measure of financial stress is constructed and measured as an index that provides signals of stress episodes in an economy. Findings The impact of financial stress shocks is greater on the economic growth of advanced economies; likewise, financial stress shocks are significant only in advanced economies. The interbank interest rate is negatively affected by financial stress in emerging economies. In general, the results show a clear view of the importance of financial stability and the economic relevance of financial stress measures in the context of macro-prudential regulation. Originality/value The results can be extended to monetary policy to implement measures that mitigate the impact of future financial crises.
We introduce the role of ‘space’ in analyzing the effect of macroeconomic policy interventions on cross-country housing price movements. We build an empirically testable analytical model and test our ...theoretical predictions for a panel of European countries over the period 1985–2015. Our aim is to demonstrate that while macroeconomic policy exerts a significant impact on international housing markets, the magnitudes of such impacts may be overestimated in the absence of spatial frictions. To test our hypotheses, we employ a spatial dynamic panel method and quantify
intra
- and
inter
-country differences of the effects of macroeconomic policy interventions on spatially interdependent housing markets. Endogeneity issues arise in our estimation, which we ameliorate by employing the spatial Durbin model for panel data. Following this approach, we include spatial, temporal and spatio-temporal lags for the identification purpose. We show that a spatially-embedded model produces relatively smaller and correct signs for macroeconomic variables in contrast to the traditional non-spatial model. It is concluded that empirical estimates from the traditional model are consistently over-estimated. These have significant policy implications for the exact role of macroeconomic interventions in explaining housing price movements. A battery of robustness tests and evaluations of predictive performance confirm our results.
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