We examine characteristics of housing price dynamics that may be consistent with rational learning and not simply irrational feedback trading. We find significant patterns of temporal and spatial diffusion that are more amenable to explanations that allow for rational components. First, the...

This article examines patterns of temporal and spatial diffusion of real estate price changes. In addition to means, changes in volatility are tracked in reaction to substantial new information, estimated with GARCH-M methods. The data covers towns in Connecticut and near San Francisco. There is...

This paper studies the influence of the evolution in intrastate and interstate deregulations on the total factor productivity growth of the US commercial banking sector for the 1971-1995 period. We consider intrastate branching, intrastate multibank holding company (MBHC), interstate multibank...

Property market dynamics depend on changes in long run equilibrium and on impediments to adjustment towards equilibrium. One of the most important aspects of property market dynamics is often attributed to the activities in the mortgage market. However, many impediment factors, such as changes...

Residential neighborhoods are defined as convex geographical areas containing similar populations and roughly homogenous housing markets. Neighborhoods are relevant largely because confidentiality requires spatial aggregation of data collected at the household level.A hedonic model using...

This paper develops a rational expectations framework for interpreting the coefficient on age in a standard hedonic model. The model demonstrates that there are two components to the age coefficient; a pure cross-sectional depreciation component and a demand-side component that changes over...

Spatial autoregressive hedonic models utilize house prices lagged in space and time to produce local house price indices: e.g., the STAR model might be used this way. This paper complements these models with a semiparametric approach, the Local Regression Model (LRM) designed to use large...

This paper examines the relationship between house price levels, school performance, and the racial and ethnic composition of Connecticut school districts between 1995 and 2000. A panel of Connecticut school districts over both time and labor market areas are used to estimate a simultaneous...

This paper extends unobserved heterogeneity to the multinomial logit model (MNL) framework in the context of mortgages terminated by refinance, move or default. It tests for the importance of unobserved heterogeneity when borrower characteristics such as income, age and credit score are included...

Spatial autoregressive hedonic models utilize house prices lagged in space and time to produce local house price indices: e.g., the STAR model might be used this way. This paper complements these models with a semiparametric approach, the Local Regression Model (LRM) designed to use large...