The nexus between housing and the macro economy : Hong Kong as a case study

Research output: Working paperWorking paper series

Abstract

This paper presents the theory and the evidence showing the close relationship between the performance of the macroeconomy and housing. Focusing on the Hong Kong experience, it is found that exports and the interest rate were two key variables that can explain the movement of housing prices over a long period. A structural break is identified in the first quarter of 1998. Using the cointegration framework, the paper highlights the importance of housing to both the economic health of the domestic sector and the fiscal health of the economy.
Original languageEnglish
Place of PublicationHong Kong
PublisherCentre for Public Policy Studies
Number of pages28
Publication statusPublished - Nov 2003

Publication series

NameCentre for Public Policy Studies Working Paper Series
PublisherLingnan University
No.143

Bibliographical note

Support from the RGC Grants Committee of Hong Kong (LU3008/00H) is gratefully acknowledged.

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