The degree and impact of differences in house price index measurement

Subtitle:

Article type: Research Article

Authors: Silver, Mick

Affiliations: International Monetary Fund, 1900 Pennsylvania Avenue NW, Washington, DC 20431, USA Tel.: +1 202 623 4932; Fax: +1 202 623 6028; E-mail: msilver@imf.org

Abstract: House price indexes (HPIs) while particularly important to the analysis of recessions, are prone to methodological and coverage differences which can undermine both within-country and cross-country economic analysis. The paper first uses a panel data set of 157 quarterly HPIs from 24 countries, along with associated measurement variables, to report on whether and how differences in HPI measurement matter. Second, revisits the modeling of the determinants of house price inflation using HPIs adjusted for differences in measurement practice.

Keywords: House price indexes, housing inflation, residential property price indexes

DOI: 10.3233/JEM-150406

Journal: Journal of Economic and Social Measurement, vol. 39, no. 4, pp. 305-328, 2014