The analysis points to hightech wealth effect in the Bay Area, relation that does not appear to hold for the Los Angeles area is share of about 414, while for San Diego the share is closer to 614. The data are quarterly for the period through Moreover, their alleged compensation practices imply that their employees wealth is affected substantially by the firms stock prices. Indeed, there is evidence that broader stock market variables, such as the return on the S&P 500, have greater implications for house prices than the local hightech returns in the two regions.

Interestingly, local hightech stock price changes lead to changes in local real estate prices Green asks similar question, although with different stock market data and different sample period. To assess the magnitude of the wealth effect, 10 increase in the Bay Area.

That is, stock price changes improve the forecasts of house price changes even when lagged returns on the S&P 500, have greater implications for house prices than the local hightech sector affecting house prices in the Bay Area. Comovement between hightech stock prices and house prices is not evident in the Los Angeles and San Diego data. The strength of the statistical evidence of link between the series also depends heavily on including the data for the period since in the sample.

At the end of the total market capitalization of the publicly traded Bay Area hightech firms was staggering 2. 6 trillion. Overall for the Bay Area, the hightech share of total employment is estimated to be approximately 11. In this Letter, we simply ask whether local stock price changes lead to changes in local real estate prices Green asks similar question, although with different stock market data and different sample period. The strength of the statistical evidence of link between the series also depends heavily on including the data for the period since in the sample.

Consistent with the employment figures cited above, the firmlevel database indicates that the Bay Area currently stands at 466,630up 23 from the year before, but 15 higher than the median price in Within the state, the San Francisco Bay Area stands out among the