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Analysis of Price Bubbles on the Czech Real Estate Market
[Analýza cenových bublin na českém trhu s nemovitostmi]

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  • Kristine Gevorgyan

Abstract

This thesis deals with the issue of price bubbles on the Czech real estate market. The theoretical part explains the price bubble in terms of behavioural finance, and describes the relationship between monetary policy and asset prices from the perspective of the Austrian school and representatives of traditional economics. In the empirical part, it presents ways of identifying bubbles on the property market using relative indicators and econometric models. By means of econometric methods, this thesis analyses specific factors that influence housing prices in the Czech Republic. It puts a particular emphasis on the impact of interest rates on asset prices, because low inflation and expansionary monetary policy can create conditions for the formation of price bubbles.

Suggested Citation

  • Kristine Gevorgyan, 2015. "Analysis of Price Bubbles on the Czech Real Estate Market [Analýza cenových bublin na českém trhu s nemovitostmi]," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2015(5), pages 45-63.
    • Handle: RePEc:prg:jnlaop:v:2015:y:2015:i:5:id:485:p:45-63
    DOI: 10.18267/j.aop.485
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    References listed on IDEAS

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    More about this item

    Keywords

    housing prices; asset bubbles; interest rate; low inflation; expansionary monetary policy; regression;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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