Holmes, Mark J.Otero, JesúsPanagiotidis, Theodore2011-08-302011-08-302011Holmes, M.J., Otero, J. & Panagiotidis, T. (2011). Investigating regional house price convergence in the United States: Evidence from a pair-wise approach. Economic Modelling, 28(6), 23692376.https://hdl.handle.net/10289/5652In this paper we examine long-run house price convergence across US states using a novel econometric approach advocated by Pesaran (2007) and Pesaran et al. (2009). Our empirical modelling strategy employs a probabilistic test statistic for convergence based on the percentage of unit root rejections among all state house price differentials. Using a sieve bootstrap procedure, we construct confidence intervals and find evidence in favour of convergence. We also conclude that speed of adjustment towards long-run equilibrium is inversely related to distance.enpanel datacross-section dependencepair-wise approachhouse pricesconvergenceJournal Article10.1016/j.econmod.2011.06.015