The Sustainability of House Price Trends in the Czech Republic
On the background of current global mortgage crisis the article discusses the housing market theory and particularly the methods and indicators used for the evaluation of long-term sustainability of house price trends. The authors provide the time series of such indicators for selected OECD countries, critically examine the past research studies evaluating pre-crisis house price development and argue that house price falls present in many developed countries are more the causes than the consequences of mortgage crisis. The change in house price trends in 2007 in many developed countries could be thus interpreted as the result of the previous record house price growth, often labeled as a price bubble. In view of this hypothesis the authors try to assess the sustainability of house price development in the Czech Republic, using several indicators, error correction models and different data sources. The methods for construction of reliable house price indices are also discussed here. The results show that house prices in the Czech Republic could be above their "equilibrium" levels at the end of 2007 but this deviation was far lower than in countries like UK, Spain, Netherlands or Ireland.
Volume (Year): 2010 (2010)
Issue (Month): 2 ()
|Contact details of provider:|| Postal: |
Phone: (02) 24 09 51 11
Fax: (02) 24 22 06 57
Web page: http://www.vse.cz/
More information through EDIRC
|Order Information:|| Postal: Redakce Politické ekonomie, Vysoká škola ekonomická, nám. W. Churchilla 4, 130 67 Praha 3|
Web: http://www.vse.cz/polek/ Email:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jorge Martínez Pagés & Luis Ángel Maza, 2003. "Analysis of house prices in Spain," Banco de Espa�a Working Papers 0307, Banco de Espa�a.
- Malpezzi, Stephen, 1999.
"A Simple Error Correction Model of House Prices,"
Journal of Housing Economics,
Elsevier, vol. 8(1), pages 27-62, March.
- Cameron, Gavin & Muellbauer, John & Murphy, Anthony, 2006.
"Was There A British House Price Bubble? Evidence From A Regional Panel,"
eres2006_150, European Real Estate Society (ERES).
- John Muellbauer & Gavin Cameron & John Muellbauer, 2006. "Was There A British House Price Bubble? Evidence from a Regional Panel," Economics Series Working Papers 276, University of Oxford, Department of Economics.
- Cameron, Gavin & Muellbauer, John & Murphy, Anthony, 2006. "Was There a British House Price Bubble? Evidence from a Regional Panel," CEPR Discussion Papers 5619, C.E.P.R. Discussion Papers.
- Meen, Geoffrey, 2002. "The Time-Series Behavior of House Prices: A Transatlantic Divide?," Journal of Housing Economics, Elsevier, vol. 11(1), pages 1-23, March.
- Ray Barrell & Simon Kirby & Rebecca Riley, 2004. "The Current Position of UK House Prices," National Institute Economic Review, National Institute of Economic and Social Research, vol. 189(1), pages 57-60, July.
- Paul S. Mills & John Kiff, 2007. "Money for Nothing and Checks for Free; Recent Developments in U.S. Subprime Mortgage Markets," IMF Working Papers 07/188, International Monetary Fund.
- Granger, C. W. J., 1981. "Some properties of time series data and their use in econometric model specification," Journal of Econometrics, Elsevier, vol. 16(1), pages 121-130, May.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- Jonathan McCarthy & Richard W. Peach, 2004. "Are home prices the next "bubble"?," Economic Policy Review, Federal Reserve Bank of New York, issue Dec, pages 1-17.
- Brent W. Ambrose & Hugh O. Nourse, 1993. "Factors Influencing Capitalization Rates," Journal of Real Estate Research, American Real Estate Society, vol. 8(2), pages 221-238.
When requesting a correction, please mention this item's handle: RePEc:prg:jnlpol:v:2010:y:2010:i:2:id:728:p:225-252. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vaclav Subrta)
If references are entirely missing, you can add them using this form.