What Is Macroeconomic Depiction - 1531 Words

Data and Methodology Data Data Depiction We built our model by exploiting data across 22 years, from both macro and micro indicators of the economy at the city level and country level to get a more comprehensive test. Including interest rates and two of the most commonly tracked macroeconomic indictors namely, inflation and unemployment rate at the country level. Moreover, at city level the house prices and affordability were expended. To account for interest rates the short-run interest rates are used which are set by The Bank of England’s Monetary Policy Committee which is a main contributor to the overall economy and influences the investment decisions in the housing market, and is commonly used in this line of research (Chen and†¦show more content†¦The data used for the purpose of this research for the house price determinants comprising, the house price index, affordability index, unemployment rate, interest rates and consumer price index and lucky all are available from the same online source namely, The Organisation for Economic Co-operation and Development (OECD) database, and for the same periods of time covered, although the affordability measure was retrieved from Nationwide’s online database. All the data of the house price determinants are converted to their natural logarithms form. Time Series Properties of the Variables It is a well-known fact that most economic and particularly macroeconomic time series have been found to be nonstationary, requiring differencing to induce stationarity, this is reinforced by the fact that a study regarding the distribution of test statistics of a time series as early as the year 1942, (Anderson, 1942). Hence, several tests were composed most popularly the Phillips-Perron test (Phillips and Perron, 1988), KPSS test (Kwiatkowski, Phillips, Schmidt and Shin (1992)) and the augmented Dickey-Fuller test (Dickey and Fuller; 1979, 1981). Several drawbacksShow MoreRelatedOperation Managment1062 Words   |  5 Pagesglow with newfound profits, and unemployment dips to lows not seen in a decade. But in the smokestack citadels, there’s disquiet. Too many machine-tool and auto parts factories are silent; too many U.S. industries still can’t hold their own. What went wrong since the heyday of the 1960s? 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