We use vector error correction models to examine the interdependence between the high and the low price tiers during the latest housing market boom and bust. For 118 of the 364 US statistical areas analyzed, the tiered price indexes are bound by a long-run relationship. In general, low tier...

We use vector error correction models to examine the interdependence between the high and the low price tiers during the latest housing market boom and bust. For 118 of the 364 US statistical areas analyzed, the tiered price indexes are bound by a long-run relationship. In general, low tier...

The recent housing boom and bust in the United States was marked by large differences in the run-up and the subsequent decline of the housing prices both across metro areas and across market segments in the same area. One common observation in many metro areas is that the low-tier S&P...