House Price & Immigration, VAR Analysis of U.S

Abstract

This paper examines empirically the interaction between immigration and house prices in U.S. I employ panel VECM techniques to use a large annual dataset on U.S over the period 2000-2019. The VECM approach allows to address the cointegration between variables in VAR. Our results provide evidence of migration contribution to the increase of house price in U.S. (positive impact on GDP and negative impact on aggregate unemployment). We also find that migration is influenced by house price in U.S. (migration responds positively to host GDP and negatively to host total unemployment rate and house price).