Relation between real estate and stock market

Author: newman99 On: 25.06.2017

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relation between real estate and stock market

This is achieved by conducting both linear and nonlinear causality tests. The results from these tests provide a number of interesting observations which primarily show linear relationships to be spuriously affected by structural shifts which are inherent within the data. Linear test results generally show a uni-directional relationship to exist from the real estate market to the stock market. However, these results are not consistent with financial theory and for all sub-samples of the data.

In contrast, the nonlinear causality test shows a strong unidirectional relationship running from the stock market to the real estate market, and is consistent in the presence of any structural breaks.

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Not logged in Not affiliated The Causal Relationship Between Real Estate and Stock Markets. Cite this article as: The Journal of Real Estate Finance and Economics Iowa State University and University of Wisconsin, Madison.

School of Banking and Finance University of New South Wales Sydney 2. School of Finance and Economics University of Technology Sydney.

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relation between real estate and stock market

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relation between real estate and stock market
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