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Evidence of the ripple effect across the Czech housing market

Author

Listed:
  • Martin Slaný

    (CEVRO University)

  • Filip Emmer

    (Masaryk University, Faculty of Economics and Administration, Department of Regional Economics,)

Abstract

Czech regional housing markets have exhibited significant price co-movements over the last two decades. While part of this dynamic may be explained by traditional housing market fundamentals, some regions appear to be influenced by other variables. One possible explanation lies in the ripple effect, a phenomenon where house price shocks in one region influence prices in others. This study examines possible occurrence of the ripple effect using Toda-Yamamoto Granger causality. Results indicate statistically significant occurrence of lead-lag effect in eight out of 13 regions. Such price interconnectivity might be important factor for policymakers as study suggests that regional submarkets are not isolated and should be approached on macro level.

Suggested Citation

  • Martin Slaný & Filip Emmer, 2024. "Evidence of the ripple effect across the Czech housing market," International Journal of Economic Sciences, European Research Center, vol. 13(2), pages 104-115, December.
    • Handle: RePEc:aop:jijoes:v:13:y:2024:i:2:p:104-115
    as

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    References listed on IDEAS

    as
    1. Bruno Giussani & George Hadjimatheou, 1991. "Modeling Regional House Prices In The United Kingdom," Papers in Regional Science, Wiley Blackwell, vol. 70(2), pages 201-219, April.
    2. Broulíková Hana M. & Montag Josef, 2020. "Housing Privatization in Transition Countries: Institutional Features and Outcomes," Review of Economic Perspectives, Sciendo, vol. 20(1), pages 51-71, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    House price spillovers; Regional housing market; Granger causality;
    All these keywords.

    JEL classification:

    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • 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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