Maintaining the stability of the housing market in the event of an economic shock

Alina Stundziene, Vaida Pilinkiene and Andrius Grybauskas

International Journal of Housing Markets and Analysis, 2022, vol. 16, issue 2, 255-272

Abstract: Purpose - This paper aims to identify the economic stimulus measures that ensure stability of the Lithuanian housing market in the event of an economic shock. Design/methodology/approach - The econometric analysis includes stationarity test, Granger causality test, correlation analysis, autoregressive distributed lag models and cointegration analysis using ARDL bounds testing. Findings - The econometric modelling reveals that the housing price in Lithuania correlates with quarterly changes in the gross domestic product and approves that the cycles of the real estate market are related to the economic cycles. Economic stimulus measures should mainly focus on stabilizing the economics, preserving the cash and deposits of households, as well as consumer spending in the case of economic shock. Originality Value - This study is beneficial for policy makers to make decisions to maintain stability in the housing market in the event of any economic shock.

Keywords: Stability; Real estate; Lithuania; Housing market; Economic shock; Housing price (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijhmap:ijhma-12-2021-0142

DOI: 10.1108/IJHMA-12-2021-0142

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