https://orcid.org/0000-0003-2745-0119
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ABSTRACT
Motivated by the structural change since the adoption of inflation targeting in October 1992, this research investigates regional house price convergence in the UK over the period 1973:Q4–2020:Q4. By using subsample comparisons, results show that all regions in the inflation-targeting regime converges to one club until the Global Financial Crisis. The finding suggests that the successful inflation-targeting policy can promote integration among regions.
DISCLOSURE STATEMENT
No potential conflict of interest was reported by the authors.
Notes
1. Test statistics = 37.05 and p-value = 0.00. The null hypothesis of no structural break is rejected and the testing suggests an estimated break year in 1992.
2. See the cited literature about the model description.
3. Other types of unit root tests such as Phillips and Perron (Phillips & Perron, Citation1988) and the modified Dickey–Fuller testing (Elliott et al., Citation1996) are conducted as well. The results and conclusion remain consistent.