Journal of Mathematics and Statistics

A VAR Model for Forecasting Land Market Value in USA

Lei Wang

DOI : 10.3844/jmssp.2018.1.6

Journal of Mathematics and Statistics

Volume 14, 2018

Pages 1-6


Forecasts of the future tendency of economic variables such as GDP, inflation rate and unemployment rate, arise many interests from business and government. Also, Modeling the land market at the national level can capture rich dynamic presenting in interdependent economies. In this paper, we studied a Vector Auto-regression (VAR) of Land Market Value and five US macroeconomic variables. We employed the VAR model for forecasting Land Market Value in USA and analyzed annual data on the main macroeconomic variables of interest going back to 1982. Most importantly, we explore the mutual influence between Land market value and selected macroeconomics variables to enable government and investor to make informed decision regarding real estate market.


© 2018 Lei Wang. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.