Taken together, these results suggest a pattern where changes in property market conditions are first captured in the inner areas of Melbourne, before spreading to the metro and outer regions. Table 3: Granger causality test for headline, inner, metro and outer region hedonic price growth REJECT THE TEST NULL CATEGORY NULL HYPOTHESIS F-STATISTIC PROB. HYPOTHESIS? Within Metro area does not Granger Cause 0.154 0.857 No Greater Inner Melbourne Inner area does not Granger Cause 11.781*** 0.000 Yes Metro Outer area does not Granger Cause 0.091 0.913 No Inner area does not Granger Cause 11.582*** 0.000 Yes Outer Outer area does not Granger Cause 2.378* 0.096 Yes Metro Metro area does not Granger Cause 29.258*** 0.000 Yes Outer Headline does not Granger Cause 0.477 0.752 No Inner Headline does not Granger Cause 0.940 0.443 No Metro Headline does not Granger Cause 13.840*** 0.000 Yes Outer Inner area does not Granger Cause 5.355*** 0.001 Yes Headline Metro area does not Granger Cause 10.186*** 0.000 Yes Headline Outer area does not Granger Cause 3.471*** 0.010 Yes Headline ***, ** and * indicate that the results are signifiican at 1 per cent, 5 per cent and 10 per cent, respectively.
Taken together, these results suggest a pattern where changes in property market conditions are first captured in the inner areas of Melbourne, before spreading to the metro and outer regions. Table 3: Granger causality test for headline, inner, metro and outer region hedonic price growth TEST CATEGORY NULL HYPOTHESIS F-STATISTIC PROB. REJECT THE NULL HYPOTHESIS? Within Greater Melbourne Metro area does not Granger Cause Inner 0.154 0.857 No Inner area does not Granger Cause Metro 11.781*** 0.000 Yes Outer area does not Granger Cause Inner 0.091 0.913 No area does not Granger Cause Outer 11.582*** 0.000 Yes Outer area does not Granger Cause Metro 2.378* 0.096 Yes Metro area does not Granger Cause Outer 29.258*** 0.000 Yes Headline does not Granger Cause Inner 0.477 0.752 No Headline does not Granger Cause Metro 0.940 0.443 No Headline does not Granger Cause Outer 13.840*** 0.000 Yes Inner area does not Granger Cause Headline 5.355*** 0.001 Yes Metro area does not Granger Cause Headline 10.186*** 0.000 Yes Outer area does not Granger Cause Headline 3.471*** 0.010 Yes ***, ** and * indicate that the results are signifiican at 1 per cent, 5 per cent and 10 per cent, respectively.
Victoria%27s%20Economic%20Bulletin%20-%20Volume%202.docx