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Estimating Price Rigidities in the Russian Real Estate Markets

Author

Listed:
  • Konstantin Styrin

    (CEFIR)

  • Oleg Zamulin

    (New Economic School and CEFIR)

Abstract

Behavior of apartment prices in the Russian cities following the ruble devaluation in August 1998 dffered markedly in different cities. In cities, where prices were denominated in dollars, they fell slowly over time. In cities, where apartments were priced in rubles, the dollarequivalents fell rapidly with the exchange rate, stayed low for two to three years, and then recovered rapidly when economy picked up. Such behavior is found to be consistent with a sticky-price model with backward-looking agents. Sticky information model finds less support. Finally, such behavior of prices is not consistent with forward-looking agents or exible prices.

Suggested Citation

  • Konstantin Styrin & Oleg Zamulin, 2003. "Estimating Price Rigidities in the Russian Real Estate Markets," Working Papers w0026, Center for Economic and Financial Research (CEFIR).
    • Handle: RePEc:cfr:cefirw:w0026
    as

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    References listed on IDEAS

    as
    1. Irina Levina & Oleg Zamulin, 2002. "Foreign Currency Pricing," Working Papers w0023, New Economic School (NES).
    2. Kiley, Michael T, 2000. "Endogenous Price Stickiness and Business Cycle Persistence," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 32(1), pages 28-53, February.
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    7. S. Fischer, 1975. "Long-Term Contracts, Rational Expectations and the Optimal Money Supply Rule," Working papers 166, Massachusetts Institute of Technology (MIT), Department of Economics.
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