The paper considers the use of a Consumer Price Index (CPI) for three possible purposes: (1) as a Cost of Living Index (COLI); i.e., as a measure of the relative cost of achieving the standard of living when facing two different sets of prices for the same group of commodities; (2) as a consumption deflator; i.e., the price change component for a decomposition of a value ratio into price and qu...

In this paper we propose the application of the original, superlative price index formula for the measurement of commodity substitution bias associated with Consumer Price Index (CPI). In our simulation study we compare CPI bias values calculated by using the original price index formula with those calculated on the basis of some known, superlative price indices.

Abstract Tourism’s positive and negative externalities are of an extreme social economic importance for the tourism dominant countries. In particular, studying tourism’s impact on housing prices has experienced increased interest over past decade as it a relevant influence real estate economics market development, which spills entire economy. Considering limited existing literature, objective t...

In 2004, the Western Australian state government announced and implemented policy incentives for first-home buyers in the form of either total conveyance duty (stamp duty) exemptions or significant reductions for specified price bands of housing. This paper analyses the impact of this policy on demand in the Perth housing market. Results confirm an immediate and significant impact on demand in ...

This paper uses MSA level data and a panel VAR model to analyze the dynamic determination and impact of the volatility of single-family home value appreciation. We find that the volatility can be magnified by an exogenous increase in the home appreciation rate, responds to changes in the population growth rate, and is serially correlated. Moreover, an exogenous increase in the volatility increa...

This paper examines the experience of fourteen developed countries for which there are about thirty years of quarterly inflation-adjusted housing price data. Price dynamics is modeled as a combination of a country-specific component and a cyclical component. The cyclical component is a two-state Markov switching process with parameters common to all countries. We find that the latent state vari...

This paper explores the long run relationship between homeownership rates, expenditure shares for housing services and house price fluctuations across countries. First, I provide a comprehensive empirical characterization of housing cycles using a large database covering 18 OECD countries over the period 1970:1-2013:4. Second, the interactions between homeownership, expenditure shares for housi...

Objective. In the United States, growth regulations aimed at environmental protection and better-quality urban areas have become very popular since the 1960s. Although many studies have examined the housing-price effects of local and regional growth management regulations, none has examined the effects of a state law. Past research has also tended to be cross-sectional, rather than longitudinal...