Search results

1 – 3 of 3
Per page
102050
Citations:
Loading...
Access Restricted. View access options
Article
Publication date: 14 November 2017

Jay Peter Blake and Behrooz Gharleghi

The purpose of this study is to investigate the Ripple Effect of house prices at an inter-suburban level of analysis in the Sydney metropolitan area. By doing this, more practical…

297

Abstract

Purpose

The purpose of this study is to investigate the Ripple Effect of house prices at an inter-suburban level of analysis in the Sydney metropolitan area. By doing this, more practical information of price transmission can be provided to improve residential real estate purchasing decisions of market participants. Equity from residential real estate is a major component of household wealth and is frequently used to improve and upgrade homes. With the ever-increasing prices of real estate in Sydney making more efficient purchasing decisions can grow this wealth quicker allowing a household to obtain financial related goals at a quicker pace.

Design/methodology/approach

Using a two-stage sampling technique strings of adjoining suburbs from different Sydney regions were analysed using a combination of price graphs, Engle–Granger and Johansen co-integration techniques and Granger causality tests.

Findings

Pairwise co-integration was lacking throughout the various suburb strings, whereas multivariate co-integration was found in the lower priced areas further from the central business district, as these areas also experience less price volatility. The geographical location of suburbs therefore plays an important role in the ability to predict an individual suburb’s price movements. For a prominent Ripple Effect to exist at this level the best conditions would consist of a singular demand centre with restricted geographical space to which this demand can spread. Causal pathways were subsequently mapped for each suburb string identifying price transmission pathways and confirming support that while the standard Ripple Effect does not exist at an inter-suburban level, it is still possible to predict price movements by considering the price behaviour of surrounding suburbs.

Originality/value

This paper adds to the literature by examining the Ripple Effect across different suburbs in Sydney. This is done via an extensive search through the literature and analysing recent real estate data.

Details

International Journal of Housing Markets and Analysis, vol. 11 no. 1
Type: Research Article
ISSN: 1753-8270

Keywords

Access Restricted. View access options
Article
Publication date: 11 January 2016

Najla Shafighi, Abu Hassan Shaari, Behrooz Gharleghi, Tamat Sarmidi and Khairuddin Omar

The purpose of this paper is to identify whether any financial integration exists among ASEAN+5 members and some East Asian countries, including China, Japan, Korea, Hong Kong…

659

Abstract

Purpose

The purpose of this paper is to identify whether any financial integration exists among ASEAN+5 members and some East Asian countries, including China, Japan, Korea, Hong Kong, and Taiwan, through interest rate, exchange rate, level of prices, and real output.

Design/methodology/approach

Therefore, the authors intend to identify any long-term relationship among these variables utilizing the data in the most efficient manner via panel cointegration and panel unit root tests. The study likewise uses a panel-based vector error correction (panel-vec) model for comparison and also short-run relationship analysis. The long-run relationship is estimated using dynamic ordinary least square technique and a panel multi-layer perceptron (MLP) neural network.

Findings

For the ten countries under consideration, the empirical result supports the long-run equilibrium relationship among real output, exchange rate, interest rate, and level of prices, and that the cointegration relationship implies unidirectional causality from exchange rate to real output. This result is favorable to a model that contains real output as a dependent variable and exchange rate, interest rate, and level of prices as explanatory variables. Panel-vec results indicate no evidence of short-run causality from exchange rate to real output. Furthermore, the comparison result of long-run equation estimation shows the superiority of neural networks over econometric models.

Originality/value

This paper adds to the literature by examining the financial cointegration using a panel model that contains real exchange rate, interest rate, real output, and inflation rate in ASEAN+5. Additionally this paper applied the MLP neural network to yield a robust estimation of the long-run equation obtained among the variables.

Details

Journal of Economic Studies, vol. 43 no. 1
Type: Research Article
ISSN: 0144-3585

Keywords

Access Restricted. View access options
Article
Publication date: 7 August 2018

Fahima Charef and Fethi Ayachi

The purpose of this paper is to investigate the dynamic relationship between inflation, interest rate differential, the exchange trade and exchange rate parities, i.e. (USD/TND…

693

Abstract

Purpose

The purpose of this paper is to investigate the dynamic relationship between inflation, interest rate differential, the exchange trade and exchange rate parities, i.e. (USD/TND, EUR/TND and JPY/TND).

Design/methodology/approach

Given the existing non-linear form between the different time series in this study, the empirical analysis is based on the using of non-parametric method such as the artificial neural networks. In order to detect the causality relationship between the variables, the authors use an NARX model.

Findings

Mixed results were found; there is a bidirectional relationship between inflation and exchange rate among others. Results also show that there is a strong correlation between the terms of trade and inflation, which says that trade openness increases the demand for imported goods and, therefore, causes more inflation for Tunisia.

Originality/value

After these results, it is important for policymakers to know which factors influence exchange rate stability, especially in developing countries like Tunisia.

Details

African Journal of Economic and Management Studies, vol. 9 no. 3
Type: Research Article
ISSN: 2040-0705

Keywords

1 – 3 of 3
Per page
102050