## Figure 3.12. Bilateral Links between Countries Are Associated with House Price Synchronization

## Source details

**Canonical URL:** [Figure 3.12. Bilateral Links between Countries Are Associated with House Price Synchronization](https://www.imf.org/-/media/files/publications/gfsr/2018/april/chapter-3/pdf/figure3-12.pdf)

## Other formats

- [Markdown version](/-/media/files/publications/gfsr/2018/april/chapter-3/pdf/figure3-12.pdf.md)
- [Structured JSON version](/-/media/files/publications/gfsr/2018/april/chapter-3/pdf/figure3-12.pdf.json)

---

### Key finding
- The figure shows statistically significant standardized coefficients indicating that bilateral links between countries are associated with house price synchronization.

### Methodology and controls
- Synchronicity is measured by the synch1 of gaps measure; see Annex 3.2 for computation methodology.
- Coefficients are calculated using the coefficients in specification 4 in Annex Table 3.2.1 and their respective standard deviations, and presented in terms of standard deviations of the dependent variable.
- Specification 4 controls for global financial conditions (proxied through global liquidity) in addition to country-pair fixed effects and quadratic and linear time trends.
- Standard errors are clustered multiway at time, country i, and country j.
- i = country 1 and j = country 2 in the country pair.

### Key statistics and numeric details
- Top-left numeric labels in the figure: 0.00 and 0.09.
- Horizontal/vertical axis tick values shown in the figure: 0.01, 0.02, 0.03, 0.04, 0.05, 0.06, 0.07, 0.08.
- The standard deviation for business cycle synchronization is 0.0124.
- The standard deviation for bilateral bank integration is 1.040.

### Presentation note
- Figure shows standardized coefficients presented in terms of standard deviations of the dependent variable and reflects results that are statistically significant.

*Source: IMF staff estimates.*

---


_Source: https://www.imf.org/-/media/files/publications/gfsr/2018/april/chapter-3/pdf/figure3-12.pdf_