Evidence of the ripple effect across the Czech housing market

Martin Slaný () and Filip Emmer ()
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Martin Slaný: CEVRO University
Filip Emmer: Masaryk University, Faculty of Economics and Administration, Department of Regional Economics,

International Journal of Economic Sciences, 2024, vol. 13, issue 2, 104-115

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.

Keywords: House price spillovers; Regional housing market; Granger causality (search for similar items in EconPapers)
JEL-codes: R15 R30 R31 (search for similar items in EconPapers)
Date: 2024
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https://eurrec.org/RePec/aop/jijoes/0091ES.rdf117127
https://eurrec.org/RePec/aop/jijoes/0091ES.rdf117127?download=6

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Persistent link: https://EconPapers.repec.org/RePEc:aop:jijoes:v:13:y:2024:i:2:p:104-115

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