Home away from home? Foreign demand and London house prices

• 成果类型: Article
• 署名作者: Badarinza, Cristian; Ramadorai, Tarun
• 署名单位: National University of Singapore; Imperial College London; Center for Economic & Policy Research (CEPR)
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2018.07.010
• 发表日期: 2018
• 页码: 532-555
• 关键词: house prices; Safe-haven demand; POLITICAL RISK

摘要

Identifying the effects of flights to safety on asset prices using pure time-series methods is difficult because crises are infrequent. We develop a new cross-sectional identification approach, motivated by the insight that investors may differ in their preferred habitats within a broad asset class. We apply the method to the question of whether foreign capital is responsible for residential real estate price movements in global cities such as London and New York, especially during crises. Using large data sets of housing transactions, we find that foreign risk strongly affects London house prices. The effects are long-lasting, and are associated with both safe-haven effects and immigration. (C) 2018 Elsevier B.V. All rights reserved.