Estimación de la inflación regional de los precios de la vivienda en Chile

Inflation has been constantly studied at national level because its negative effects over the economy, however this problem has generally been ignored at regional scale, mainly because the assumption that regions have a homogeneous inflation behavior. Expanding the Paredes and Aroca (2008) methodology to the temporal dimension and using National Statistics Institute (INE) data, this paper contributes with an estimation of regional housing inflation for Chilean regions. Main results suggest that regions besides bear different cost of living (higher for extreme regions than those in the center), are also showing heterogeneous speed in their price evolution process. This result suggests that effects of housing policies (and potentially other sectors policies) are heterogeneous between regions and more inefficient than those that could be implemented when taking account of the different regional inflation pattern.