Date of Award

2020

Document Type

Thesis

Degree Name

Bachelors

Department

Social Sciences

First Advisor

Yu, Sherry

Area of Concentration

Economics

Abstract

This paper examines the informational efficiency of the market for single-family houses in the Miami Metropolitan Statistical Area (MSA). Tentative evidence shows that the Miami MSA does not have an informationally efficient housing market obtained by performing unit-root testing on the S&P/Case-Shiller FL-Miami Home Price Index. More specifically, the Augmented Dickey-Fuller test and the Phillips-Perron test are conducted to evaluate the random walk hypothesis. Further, it appears that there exists a structural break in the time series during the Great Recession of 2008. A post-recession study is separately conducted to evaluate the recovery process of the Miami MSA real estate market. Finally, the data is detrended and tested for the presence of a unit root. This thesis concludes with a discussion on its limitations, and provides a direction for future research that can be done to analyze informational efficiency in the Miami MSA housing market.

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