Author URLs
Document Type
Article
Publication Date
2017
Subject: LCSH
Housing--Prices, Stocks--Prices, Economics--United States
JEL Classification
E20, E32, G00
Disciplines
Economics
Abstract
This paper studies the relationship between housing prices, stock prices, interest rates and aggregate output in the U.S. using monthly data from 1993 to 2014. Evidence from causality tests and a variance decomposition procedure suggest that stock prices have a much larger effect on aggregate output in the U.S. economy than do either housing prices or interest rates. Instead, the wealth effect created by changes in stock prices has a relatively large impact on U.S. aggregate output. Separate estimations and variance decompositions for the sample periods 1993 - 2001, 2002 – 2008 and 2009 – 2014 show that the impact of housing prices relative to stock prices has been waning over time.
DOI
10.1080/00036846.2017.1361009
Repository Citation
Upadhyaya, Kamal; Dhakal, Dharmendra; and Mixon, Jr., Franklin, "Housing Prices, Stock Prices and the U.S. Economy" (2017). Economics & Business Analytics Faculty Publications. 11.
https://digitalcommons.newhaven.edu/economics-facpubs/11
Publisher Citation
Upadhyaya, Kamal P., Dharmendra Dhakal, and Franklin G. Mixon Jr. "Housing prices, stock prices and the US economy." Applied Economics (2017): 1-7. http://dx.doi.org/10.1080/00036846.2017.1361009
Comments
This is an Accepted Manuscript of an article published by Taylor & Francis in Applied Economics on August 4, 2017, available online:
http://www.tandfonline.com/10.1080/00036846.2017.1361009