The Impact of a Change in Real Estate Value on Private Consumption in Estonia

Signe Rosenberg ()

Research in Economics and Business: Central and Eastern Europe, 2015, vol. 7, issue 2

Abstract: This paper examines the link between the value of residential real estate stock and private consumption using data from Estonia. Estonia has a high share of owner-occupancy due to the property reform that was begun after regaining independence in 1991, and has also seen large changes in real estate prices. A vector error correction model was constructed with private consumption, real estate stock value, GDP and household debt as the variables. The results suggest the presence of a long-run relationship, showing that changes in the value of residential real estate stock positively affect private consumption in the long run, i.e. the effect is permanent and has the expected positive sign.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.rebcee.eu/index.php/REB/article/download/78/65 (application/pdf)
http://www.rebcee.eu/index.php/REB/article/view/78 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ttu:rebcee:78

Access Statistics for this article

More articles in Research in Economics and Business: Central and Eastern Europe from Tallinn School of Economics and Business Administration, Tallinn University of Technology Contact information at EDIRC.
Bibliographic data for series maintained by Anneli Kalm ().