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Okenna Gerrard

Okenna Gerrard

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The total return on housing is fully reflected in house prices even when it cannot be measured accurately, and (ii) Valuable long-run information can be captured by using prices rather than using returns, since differencing house prices and non-housing CPI lead to a loss of long-run information contained in the series, Moreover, unlike previous studies, to avoid potential bias in estimating how inflation affects housing prices, we exclude housing costs from our measure of the consumer price index of goods and services.

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