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dc.contributor.authorAizenman, Joshuaen_US
dc.contributor.authorJinjarak, Yothinen_US
dc.date.accessioned2009-07-13en_US
dc.date.accessioned2012-09-21T11:53:42Z-
dc.date.available2012-09-21T11:53:42Z-
dc.date.issued2008en_US
dc.identifier.urihttp://hdl.handle.net/10419/64032-
dc.description.abstractThis paper studies the association between the current account and real estate valuation across countries, subject to data availability [43 countries, of which 25 are OECD], during 1990 - 2005. We find robust and strong positive association between current account deficits and the appreciation of the real estate prices/(GDP deflator). Controlling for lagged GDP/capita growth, inflation, financial depth, institution, urban population growth and the real interest rate; a one standard deviation increase of the lagged current account deficits is associated with a real appreciation of the real estate prices by 10%. This real appreciation is magnified by financial depth, and mitigated by the quality of institutions. Intriguingly, the economic importance of current account variations in accounting for the real estate valuation exceeds that of the other variables, including the real interest rate and inflation. Among the OECD countries, we find evidence of a decline overtime in the cross country variation of the real estate/(GDP deflator), consistent with the growing globalization of national real estate markets. Weaker patterns apply to the non-OECD countries in the aftermath of the East Asian crisis.en_US
dc.language.isoengen_US
dc.publisherSanta Cruz Inst. for International Economics Santa Cruz, Calif.en_US
dc.relation.ispartofseriesWorking Papers, Santa Cruz Center for International Economics 08-16en_US
dc.subject.jelF15en_US
dc.subject.jelF21en_US
dc.subject.jelF32en_US
dc.subject.jelR21en_US
dc.subject.jelR31en_US
dc.subject.ddc330en_US
dc.subject.keywordcurrent accounten_US
dc.subject.keywordreal estateen_US
dc.subject.keywordappreciationen_US
dc.subject.keywordfinancial depthen_US
dc.subject.stwZahlungsbilanzungleichgewichten_US
dc.subject.stwLeistungsbilanzen_US
dc.subject.stwImmobilienpreisen_US
dc.subject.stwAufwertungen_US
dc.subject.stwZinsen_US
dc.subject.stwInflationsrateen_US
dc.subject.stwWelten_US
dc.subject.stwOECD-Staatenen_US
dc.titleCurrent account patterns and national real estate marketsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn604576528en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Working Papers, Santa Cruz Institute for International Economics, UC Santa Cruz

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