International Synchronicity of Housing Prices

Revista de Análisis Económico, Vol. 31, Nº 2, pp. 115-134 (Octubre 2016)

20 Pages Posted: 16 Jun 2017

See all articles by Alejandro Jara

Alejandro Jara

Bank for International Settlements (BIS)

Nestor Romero

University of Manchester - Alliance Manchester Business School

Date Written: October 15, 2016

Abstract

While the synchronization of business cycles has been much studied in the literature, housing prices’ synchronization has not. In this paper we study the determinants of the housing prices’ synchronicity for a variety of advanced and emerging countries. In order to do so, we rely on Kalemli-Ozcan et al. (2009)’s definition of synchronicity and on the housing prices indexes provided by the Bank for International Settlements (BIS) and other sources. In particular, we study the relationship of the housing prices’ synchronicity and banking integration. Our finding show that, after controlling by macroeconomic and idiosyncratic factors, banking integration positively and significantly affects the synchronicity of housing prices. We also find that this effect is lost during the global financial crisis for the synchronicity between advanced countries, but it remains significant for the synchronicity between advanced and emerging economies.

Keywords: Housing Prices, Synchronicity, Banking Integration

JEL Classification: E32, F32, F41, G10, G12, G15

Suggested Citation

Jara, Alejandro and Romero, Nestor, International Synchronicity of Housing Prices (October 15, 2016). Revista de Análisis Económico, Vol. 31, Nº 2, pp. 115-134 (Octubre 2016), Available at SSRN: https://ssrn.com/abstract=2986963

Alejandro Jara

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Nestor Romero (Contact Author)

University of Manchester - Alliance Manchester Business School ( email )

Booth Street West
Manchester, M15 6PB
United Kingdom

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