IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The Housing Subsidy Scheme and Households' Wealth in Hungary: Urban Legends and Facts

Listed author(s):
  • Gabor Vadas
Registered author(s):

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.

File URL:
Download Restriction: Access to full text is restricted to subscribers.

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.

Article provided by Taylor and Francis Journals in its journal European Journal of Housing Policy.

Volume (Year): 9 (2009)
Issue (Month): 1 ()
Pages: 1-24

in new window

Handle: RePEc:taf:eurjhp:v:9:y:2009:i:1:p:1-24
DOI: 10.1080/14616710802693508
Contact details of provider: Web page:

Order Information: Web:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

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: (Chris Longhurst)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.