TY - JOUR
T1 - Studying the Dynamic Relationships between Residential Property Prices, Stock Prices, and GDP
T2 - Lessons from Hong Kong
AU - Chan, Hing Lin
AU - Woo, Kai Yin
PY - 2013/1
Y1 - 2013/1
N2 - This paper studies the dynamic relationships between GDP, residential property prices, and stock prices in Hong Kong. The study is interesting because most people put their wealth into these two markets. We find that there are long-run feedback effects between the two asset markets, providing evidence of wealth and credit-price effects in Hong Kong. There are also long-run, bi-directional causal links between real GDP and real asset prices. Hence, real asset prices can drive long-run economic growth and vice versa. Finally, the paper discusses what policy lessons can be drawn from the empirical analyses that have been undertaken.
AB - This paper studies the dynamic relationships between GDP, residential property prices, and stock prices in Hong Kong. The study is interesting because most people put their wealth into these two markets. We find that there are long-run feedback effects between the two asset markets, providing evidence of wealth and credit-price effects in Hong Kong. There are also long-run, bi-directional causal links between real GDP and real asset prices. Hence, real asset prices can drive long-run economic growth and vice versa. Finally, the paper discusses what policy lessons can be drawn from the empirical analyses that have been undertaken.
UR - https://www.jstor.org/stable/24862540
U2 - 10.1080/10835547.2013.12092068
DO - 10.1080/10835547.2013.12092068
M3 - Journal article
SN - 1052-7001
VL - 22
SP - 75
EP - 89
JO - Journal of Housing Research
JF - Journal of Housing Research
IS - 1
ER -