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Paper eres2010_026:
HOUSING MARKETS IN CENTRAL AND EASTERN EUROPE: IS THERE A BUBBLE IN THE CZECH REPUBLIC?

id eres2010_026
authors Zemcik, Petr
year 2010
title HOUSING MARKETS IN CENTRAL AND EASTERN EUROPE: IS THERE A BUBBLE IN THE CZECH REPUBLIC?
source 17th Annual European Real Estate Society Conference in Milan, Italy
summary Real estate prices more than doubled in many countries of Central and Eastern Europe from 2003 to 2008. In this paper, I provide the first assessment of whether housing prices in this region correspond to rents, i.e. to cash-flows related to an apartment purchase. State-of-the-art panel data stationarity and Granger causality techniques are employed to test the implications of the standard present-value model using regional data from the Czech Republic. Apartment prices both in this country overall and in its capital are only slightly overvalued. In addition, changes in prices are helpful in predicting changes in rents and vice versa.
keywords Central and Eastern Europe, Czech Republic, panel data, unit root, bubble, house prices, rents
series ERES:conference
email petr.zemcik@cerge-ei.cz
more http://www.eres2010.org/index.asp?page=papers_download
content file.ppt (1,286,656 bytes)
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ratings
session Real Estate Finance (3)
last changed 2010/08/04 20:47
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