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House price convergence Across Europe

Author

Listed:
  • Laia Maynou

    (Department of Health Policy, London School of Economics and Political Science, UK)

  • Bruce Morley

    (Department of Economics, University of Bath, UK)

  • Mercedes Monfort

    (IEI and Department of Economics, Universitat Jaume I, Castellón, Spain)

  • Javier Ordóñez

    (IEI and Department of Economics, Universitat Jaume I, Castellón, Spain)

Abstract

The aim of this study is to determine whether there is any evidence of convergence in house prices across the European economies, including both members and non-members of the Eurozone. A new test which searches for convergence among clusters of markets is used. This suggests there are five clusters across Europe, however there is no evidence of a Eurozone cluster. The bconvergence dynamic model shows overall convergence among the 12 countries analysed. The econometric analysis also allows us to determine the main drivers of the real House Price indices, which are private consolidated debt (%GDP), the unemployment rate (%) and the long-term government interest rate (%). Given the importance of housing markets to the economy, the Eurozone may have to consider measures that facilitate convergence across the member’s housing markets.

Suggested Citation

  • Laia Maynou & Bruce Morley & Mercedes Monfort & Javier Ordóñez, 2020. "House price convergence Across Europe," Working Papers 2020/07, Economics Department, Universitat Jaume I, Castellón (Spain).
    • Handle: RePEc:jau:wpaper:2020/07
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    References listed on IDEAS

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    Cited by:

    1. Rajesh Raj & Rath D.P., 2022. "House Price Convergence: Evidence from India [Convergence des prix des logements : le cas indien]," Working papers 893, Banque de France.

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    More about this item

    Keywords

    convergence; European Union; house prices;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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