Domino Effects within a Housing Market: The Transmission of House Price Changes Across Quality Tiers

Posted: 8 Aug 2008

See all articles by Lok Sang Ho

Lok Sang Ho

Chu Hai College of Higher Education

Yue Ma

Independent

Donald R. Haurin

Ohio State University (OSU) - Economics

Date Written: August 7, 2008

Abstract

We argue that shocks to a housing market are transmitted through the hierarchy of quality tiers within a housing market. The result is the prediction of waves of house price changes accompanied by changes in transaction volume. Our study is related to existing models of spatial ripple effects across housing markets. The data are from the Hong Kong housing market. The findings from Granger causality tests strongly support the argument that ripple or domino effects within a single housing market occur in response to external shocks.

Keywords: housing, homeownership, ripple effect, down-payment, price dynamics, equity effects, public housing, privatization

JEL Classification: E32, H30, R21, R31

Suggested Citation

Ho, Lok Sang and Ma, Yue and Haurin, Donald R., Domino Effects within a Housing Market: The Transmission of House Price Changes Across Quality Tiers (August 7, 2008). Journal of Real Estate Finance and Economics, Vol. 37, No. 4, 2008. Available at SSRN: https://ssrn.com/abstract=1211001

Lok Sang Ho (Contact Author)

Chu Hai College of Higher Education ( email )

Yi Lok Street, Rivera Gardens
Tsuen Wan
Hong Kong

Yue Ma

Independent ( email )

No Address Available

Donald R. Haurin

Ohio State University (OSU) - Economics ( email )

154 N. Oval Mall
1010G Derby Hall
Columbus, OH 43210-1172
United States
614-292-0482 (Phone)
614-292-9530 (Fax)

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