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With the advent of EMU monetary policy can no longer be used to prevent housing market bubbles in regional economies … turning into bubbles did lasting damage to the two economies, damage that could have been avoided by more appropriate fiscal …
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identify temporary house price bubbles, amplified by trend extrapolation, and crashes reinforced by fundamentalists. The …
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Using data for 70 U.S. metropolitan areas, this study explores spatial heterogeneity in house price dynamics. We use recent advances in panel econometrics that allow for spatial heterogeneity, cross-sectional dependence, and non-stationary but cointegrated data. We test for spatial differences...
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