ABSTRACT
Applied econometrics has been used to study various macroeconomic conditions, such as construction accident compensation data (Borooah et al. 1998), economic growth (Li and Ng 2013), business activities, unemployment rates, the relationship between carbon dioxide emission and GDP (Li and Hung 2013), etc. Another useful application falls on the international housing market. Many applied econometrics models are used to study the relationship between various factors that are related to housing prices. In this chapter, several econometric models are discussed: the Hodrick–Prescott (HP) filter, the Vector Error Correction model (VECM) and the impulse response function, the Hedonic Pricing model and the Cobb–Douglas production function, the State Space model (SSM) and the Probit model. We shed light on the theoretical meanings and important features of the aforementioned econometric models.
