Gupta, Rangan; Miller, Stephen M. - 2009
, we perform cointegra-
tion tests of the housing price indexes for the MSAs, finding seven cointegrating
vectors. Thus … concludes.
2. Housing Demand and Supply and Spatial Price Arbitrage
The Law of One Price (LOOP) states that a homogeneous good … that sells in two different
markets should sell for the same price, ignoring transaction and transportation costs …