An interdependence analysis of Australian house prices using variance decomposition

Purpose - The purpose of this paper is to analyse the interdependencies of the house price growth rates in Australian capital cities.
Design/methodology/approach - A vector autoregression model and variance decomposition are introduced to estimate and interpret the interdependences among the growth rates of regional house prices in Australia.
Findings - The results suggest the eight capital cities can be divided into three groups: Sydney and Melbourne; Canberra, Adelaide and Brisbane; and Hobart, Perth and Darwin.
Originality/value - Based on the structural vector autoregression model, this research develops an innovative interdependence analysis approach of regional house prices based on a variance decomposition method.

Does testosterone determine dominance in the house sparrow Passer domesticus? An experimental test

Badges of status function in many birds within a social context to establish dominance hierarchies and reduce antagonistic encounters. In order to maintain the honesty of the signalling system, such badges must be costly to produce or to maintain. The chest bib of the house sparrow functions as a badge of status and changes in size are known to be controlled by testosterone levels. We sought to test the relative importance of testosterone as opposed to bib size in determining dominance within a group of male house sparrows. We did this by manipulating testosterone levels independently during both breeding and post-breeding seasons in experimental birds and examining the effect of testosterone titre, as well as corticosterone titre relative to bib size on dominance levels. Dominance hierarchies within the groups were tested during both the breeding and post-breeding phases. We compared the results of these tests with dominance among intact (unmanipulated) birds. Results suggested that the breeding season dominance levels were largely determined by testosterone levels as well as bib size, whereas the post-breeding dominance levels were determined by postbreeding testosterone titre and previous breeding season dominance level. Within unmanipulated birds, basal corticosterone levels were significantly, negatively correlated with dominance level, but only during the breeding season. The influence of breeding season dominance on post-breeding dominance suggests social history is important in determining dominance interactions as well as current testosterone levels and bib size.

Spatial and temporal variation of house prices

This thesis originally developed a spatial and temporal analysis approach. This approach was applied to investigate the variation of house prices in Australia. The findings discovered the behaviours of house prices and the interconnections between them across the Australian cities.

House price bubble estimations in Australia's capital cities with market fundamentals

This paper investigates the existence of house price bubbles in Australia's eight capital cities in recent years by using quantitative analyses including Johansen cointegration test, Granger causality test, impulse response and Chow forecast test. While interactions between house prices and market fundamentals are discussed in long-run and causal estimations, shocks from the market fundamentals to house prices are investigated in generalized impulse response analyses. Findings from estimating house price bubbles for eight capital cities suggest that there was an obvious house price bubble in Perth, while a slight house price bubble occurred in Sydney. In contrast, house prices in Adelaide and Darwin can be explained very well by market fundamentals, while house prices in Melbourne, Brisbane, Hobart and Canberra were undervalued in the study period.

A panel regression method for quantifying the convergence of house prices

The convergence among house prices has attracted much attention from researchers. Previous research mainly utilised a time-series regression method to investigate convergences of house prices, which may ignore the heterogeneity of houses across cities. This research developed a panel regression method, by which the heterogeneity of house prices can be captured. Seemingly unrelated regression estimators were also adapted to deal with the contemporary correlations across cities. Investigation of the convergence among house prices in the Australian capital cities was carried out by using the developed panel regression method. Results suggested that house prices converge in Sydney, Adelaide and Hobart but diverge in Darwin.

Reading house prices in Australian capital cities

House prices in the Australian capital cities have been increasing over the last two decades. An over 10% average annual increase arises in the capital cities. In Melbourne, Brisbane and Perth, the house prices increased by more than 15% annually, while the house prices in Darwin increased by even higher at about 21%. It is surprising that, after a decrease in 2008, the house prices in the Australian capital cities show a strong recovery in their last financial year’s increase. How to read the house prices in cities across a country has been an issue of public interest since the late 1980s. Various models were developed to investigate the behaviours of house prices over time or space. A spatio-temporal model, introduced in recent literature, appears advantages in accounting for the spatial effects on house prices. However, the decay of temporal effects and temporal dynamics of the spatial effects cannot be addressed by the spatio-temporal model. This research will suggest a three-part decomposition framework in reading urban house price behaviours. Based on the spatio-temporal model, a time weighted spatio-temporal model is developed. This new model assumes that an urban house price movement should be decomposed by urban characterised factors, time correlated factors and space correlated factors. A time weighted is constructed to capture the temporal decay of the time correlated effects, while a spatio-temporal weight is constructed to account for the timevaried space correlated effects. The house prices of the Australian capital cities are investigated by using the time weighted spatio-temporal model. The empirical findings suggest that the housing markets should be clustered by their geographic locations. The rest parts of this paper are organised as follows. The following section will present a principle for reading urban house prices. The next section will outline the methodologies modelling the time weighted spatio-temporal model. The subsequent section will report the relative data and empirical results, while the final section will generate the conclusions.

Aesthetic anxieties : the problem of defining the migrant house in Australia

The interest of this paper concerns the problem about the migrant house – why has it been so difficult to define? In order to examine the problem of the lack of literature on the migrant house it is important to look at the literature on the Australian house, and to examine how the migrant house is positioned or not included in this literature. It will approach this through what is accepted as discourse analysis, but with a particular position informed by the work of Stuart Hall on representation.