Modeling Regional House Prices

Research output: Contribution to journalArticleAcademicpeer-review

14 Citations (Scopus)


We develop a panel model for regional house prices, for which both the cross-section and the time series dimension is large. The model allows for stochastic trends, cointegration, cross-equation correlations and, most importantly, latent-class clustering of regions. Class membership is fully data-driven and based on the average growth rates of house prices, and the relationship of house prices with economic growth. We apply the model to quarterly data for the Netherlands. The results suggest that there is convincing evidence for the existence of two distinct clusters of regions with pronounced differences in house price dynamics.
Original languageEnglish
Pages (from-to)2097-2110
Number of pages14
JournalApplied Economics
Issue number17
Publication statusPublished - 2011

Research programs

  • EUR ESE 31
  • EUR ESE 33


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