{"title":"House price convergence: evidence from India","authors":"Raj Rajesh, Deba Prasad Rath","doi":"10.1007/s41685-023-00285-8","DOIUrl":null,"url":null,"abstract":"<div><p>Understanding trends in regional house prices and whether they converge to a single steady state or form clusters are important issues. These trends have been studied at length in respect to advanced and emerging market economies (EMEs). However, the trends are not understood well in the context of a major and populous EME such as India, which can offer vital policy insights for other countries. Using residential house price data for fifty cities, this study showed that house prices do not converge to a single steady state in India. Rather these prices form three clusters wherein they converged to their respective steady-state paths and displayed conditional convergence. Higher initial house price, home loan, rent, population density and literacy were associated with an increased probability of higher house price club. City inflation, on the contrary, increased the chances of association with lower-price clubs. Similar dynamics of housing clusters can enable policymakers to probe the common driving factors and accordingly devise cluster-specific policy measures. There is no study, so far, on club convergence of house prices for India; so this study contributes to this gap in the literature.</p></div>","PeriodicalId":36164,"journal":{"name":"Asia-Pacific Journal of Regional Science","volume":"7 3","pages":"721 - 747"},"PeriodicalIF":1.9000,"publicationDate":"2023-04-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Asia-Pacific Journal of Regional Science","FirstCategoryId":"1085","ListUrlMain":"https://link.springer.com/article/10.1007/s41685-023-00285-8","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Understanding trends in regional house prices and whether they converge to a single steady state or form clusters are important issues. These trends have been studied at length in respect to advanced and emerging market economies (EMEs). However, the trends are not understood well in the context of a major and populous EME such as India, which can offer vital policy insights for other countries. Using residential house price data for fifty cities, this study showed that house prices do not converge to a single steady state in India. Rather these prices form three clusters wherein they converged to their respective steady-state paths and displayed conditional convergence. Higher initial house price, home loan, rent, population density and literacy were associated with an increased probability of higher house price club. City inflation, on the contrary, increased the chances of association with lower-price clubs. Similar dynamics of housing clusters can enable policymakers to probe the common driving factors and accordingly devise cluster-specific policy measures. There is no study, so far, on club convergence of house prices for India; so this study contributes to this gap in the literature.
期刊介绍：
The Asia-Pacific Journal of Regional Science expands the frontiers of regional science through the diffusion of intrinsically developed and advanced modern, regional science methodologies throughout the Asia-Pacific region. Articles published in the journal foster progress and development of regional science through the promotion of comprehensive and interdisciplinary academic studies in relationship to research in regional science across the globe. The journal’s scope includes articles dedicated to theoretical economics, positive economics including econometrics and statistical analysis and input–output analysis, CGE, Simulation, applied economics including international economics, regional economics, industrial organization, analysis of governance and institutional issues, law and economics, migration and labor markets, spatial economics, land economics, urban economics, agricultural economics, environmental economics, behavioral economics and spatial analysis with GIS/RS data education economics, sociology including urban sociology, rural sociology, environmental sociology and educational sociology, as well as traffic engineering. The journal provides a unique platform for its research community to further develop, analyze, and resolve urgent regional and urban issues in Asia, and to further refine established research around the world in this multidisciplinary field. The journal invites original articles, proposals, and book reviews.The Asia-Pacific Journal of Regional Science is a new English-language journal that spun out of Chiikigakukenkyuu, which has a 45-year history of publishing the best Japanese research in regional science in the Japanese language and, more recently and more frequently, in English. The development of regional science as an international discipline has necessitated the need for a new publication in English. The Asia-Pacific Journal of Regional Science is a publishing vehicle for English-language contributions to the field in Japan, across the complete Asia-Pacific arena, and beyond.Content published in this journal is peer reviewed (Double Blind).
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