Abstract: Using transaction level data for dwellings in Paris, France over the period 1986-92, we find evidence consistent with the hypothesis that economic fundamentals constrain movements in Parisian dwelling prices over longer term horizons. The conclusion is based on the results of two different procedures for estimating an error correction model of housing prices based on supply and demand...

P olicy makers in housing sector seeks to use instruments by which they can control volatility of housing price and prevent high disturbances of the bubble and price shocks, or at least, reduce them. In the portfolio and speculation theories, it is emphasized that speculative demand for housing is the main cause of shocks and price volatilities in the sector. The theory of housing price bu...

CPI Detailed Report, November 2006 Louise Leonard Campbell is an economist in the Office of Consumer Prices and Price Indexes, U.S. Bureau of Labor Statistics. Email: [email protected] This paper examines the U.S. Bureau of Labor Statistics (BLS) past design and results of the age-bias regression model, as well as its current design. This narrative describes what has been done and present...

This paper applies the Hodrck-Prescott (HP) filter to forecast short-term residential real estate prices under cyclical movements. We separate the trend component from the cyclical component. We show that each regional residential market reacts not only to previous price movements, but also that these regional markets react to previous shocks under Auto Regressive Integrated Moving Average (ARI...