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Contagious Effect of Apartment Price Movements
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강남 아파트 가격변동의 파급효과

논문 기본 정보

Type
Academic journal
Author
Journal
한국경제통상학회 경제연구 경제연구 제25권 제1호 KCI Accredited Journals
Published
2007.1
Pages
1 - 30 (30page)

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Contagious Effect of Apartment Price Movements
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Abstract Are the movements of apartment price in Gangnam region contagious to the other big cities? This paper empirically explores the question. Empirical results show that the price change of Gangnam apartment Granger causes the apartment price changes in the big local cities. In particular, the contagious price movements from Gangnam to other regions have been conspicuous since 2001. In addition, regression analysis also shows that the magnitude of Gangnam impact on the local regions is huge. Our projection is that 1% or higher price increase a month in Gangnam raises the probability by 20~40% points that local cities' prices also jump one % or more in the next month.

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