London house prices are power-law distributed

Niall MacKay

London house prices are power-law distributed

Mathematics

Research output: Working paper › Preprint

Abstract

We explore the house price distributions for the English cities of London, Manchester, Bristol, Newcastle, Birmingham and Leeds. We find Pareto (power law) behaviour in their upper tails, which is clearly distinct from lognormal and gamma distributions in the cases of London, Manchester and Newcastle. For London, the city with the lowest power, this is a striking match with that found in the wealth distribution of the super-rich. We propose an index of Housing Wealth Inequality based on the Pareto exponent and analogous to the Gini coefficient, and comment on its possible uses.

Original language	English
Number of pages	12
Publication status	Published - 14 Dec 2010

Bibliographical note

12 pages, 4 figures, 2 tables

Access to Document

http://arxiv.org/abs/1012.3039

Cite this

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