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Income Inequality and House Prices across US States

Author

Listed:
  • Edmond Berisha

    (Montclair State University)

  • John Meszaros

    (U.S. Postal Service)

  • Rangan Gupta

    (University of Pretoria)

Abstract

This paper studies the secular increase in US income inequality and its relation to growing house prices over the past three decades. We explore income inequality’s effect on house prices based on a high-frequency (quarterly) data-set for all US states, including the District of Columbia. The analysis show that higher income inequality decreases the growth rate of house prices. However, the relationship differs for the Northeast region. We find higher income inequality corresponds with higher house prices across the states within the Northeast region.

Suggested Citation

  • Edmond Berisha & John Meszaros & Rangan Gupta, 2021. "Income Inequality and House Prices across US States," GRU Working Paper Series GRU_2021_018, City University of Hong Kong, Department of Economics and Finance, Global Research Unit.
    • Handle: RePEc:cth:wpaper:gru_2021_018
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Inequality; House Prices; Regional Studies;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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