Does tourism drive house prices in the OECD economies? Evidence from Augmented Mean Group estimator

Sudharshan Reddy Paramati (Lead / Corresponding author), Eduardo Roca

    Research output: Contribution to journalArticle

    Abstract

    This paper provides cross-country macro-economic level evidence on the impact of tourism on house prices based on a panel of 20 OECD countries during the period 1995 to 2014. In its analysis, the study also accounts for institutional quality, banking credit, per capita income and income inequality. We employ Augmented Mean Group (AMG) estimator for the empirical investigation. The findings derived from AMG are robust and reliable as it accounts for cross-sectional dependence and allows for heterogeneous slope coefficients across panel members. The results show that tourism and its interaction with income inequality have a significant positive impact on house prices in the OECD economies. The findings also suggest that the growth in banking credit and per capita income further increases house prices, while institutional quality has the opposite impact. These findings offer new policy insights and practical knowledge.
    Original languageEnglish
    Pages (from-to)392-395
    Number of pages4
    JournalTourism Management
    Volume74
    Early online date3 May 2019
    DOIs
    Publication statusPublished - Oct 2019

    Fingerprint

    OECD
    tourism
    Tourism
    income
    economy
    banking
    evidence
    credit
    Group
    Macros
    macroeconomics
    Economics
    price
    House prices
    Estimator
    interaction
    Per capita income
    Institutional quality
    Credit
    Income inequality

    Keywords

    • AMG estimator
    • Banking credit
    • Housing prices
    • Institutional quality
    • Tourism

    Cite this

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