The Housing Subsidy Scheme and Households' Wealth in Hungary: Urban Legends and Facts
As a significant part of national wealth, households' wealth is a central issue in both policy debate and academic literature. Nevertheless, in Hungary little effort has been made so far to conduct a thorough evaluation of households' wealth over the past decade. This study provides a formal evaluation of Hungarian wealth and connects the development of components of wealth to the wider economy. Based on international comparison and econometric techniques, it is confirmed that the recent level of financial wealth among Hungarian households is still relatively low, whilst the level of current housing wealth is not evidently below the equilibrium level. These results provide an explanation as to why the government's housing subsidy scheme has a major effect on house prices rather than housing supply. Moreover, soaring house prices, supported by housing loans, suppressed financial savings. The 'saving disaster', i.e. small or in some periods zero saving rates, experienced in the early 2000s, to a certain extent is the other side of the 'saving miracle' of the early and mid-1990s when households rearranged their wealth portfolio from real assets to financial assets implying decreasing house prices and a higher saving rate.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 9 (2009)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/REUJ20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/REUJ20|
When requesting a correction, please mention this item's handle: RePEc:taf:eurjhp:v:9:y:2009:i:1:p:1-24. 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: (Michael McNulty)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.