The maple bubble : a history of migration among canadian provinces
Borradores de Economía; No. 992
Date published
2017-05-02Date of last update
2017-05-02Document language
engMetadata
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Las opiniones contenidas en el presente documento son responsabilidad exclusiva de los autores y no comprometen al Banco de la República ni a su Junta Directiva.
Abstract
This study reports evidence of the existence of house price bubbles in several Canadian provinces around the recent global financial crisis. Using a wealth of monthly data for about a thirty-year period we find evidence supporting the hypothesis that the bubble in Quebec transmitted to four other Canadian provinces. Using a recently developed migration test, we show evidence of time-varying transmission intensities. In all cases an inverted U-shape is encountered, suggesting that initially migrations gain strength and then decrease after a maximum point is reached. Interestingly, intensities increase significantly around the maximum point of the bubble in Quebec. Our results have important implications for the design of housing market policies.
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URI
https://repositorio.banrep.gov.co/handle/20.500.12134/6305https://hdl.handle.net/20.500.12134/6305
https://doi.org/10.32468/be.992
https://ideas.repec.org/p/bdr/borrec/992.html
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