The Housing Bubble And The Gdp : A Correlation Perspective

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LITERATURE REVIEW A study from Ray M. Valadez, “The housing bubble and the GDP: a correlation perspective” in Journal of Case Research in Business and Economics has been done to focus on the relationship between the Real Gross Domestic Product and the situation of Housing Bubble. In this research, the author has concentrated on the time from the beginning of losing trust in government from the financial institution. He emphasizes how much the housing bubble relates to the recession in the economy. The author takes the sample on changes in GDP and changes in the housing price index from 2005 to 2006 in order to illustrate the statistical connection between them. The dependent variable were used is quarterly changes of adjusted GDP, the database of the research were base on a report on NCSS software. According these results, the changes in both HPI and GDP have likely similar common from in the period of 2005 and 2006, the data showed that there were significant changes in the next two years. The result also showed that housing price and GDP has been long observed and their relationship has more innovations at the end of 2009. Another Research has done by a group of composers including Zhuo Chen, Seong-Hoon Cho, Neelam Poudyal and Roland K. Roberts. The name of research was “Forecasting Housing Prices under Different Submarket Assumptions.” The paper focus on the submarket and use the data of home sale. The database was taken from the Knoxville city combined with

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