EconPapers    
Economics at your fingertips  
 

Regional Analysis of Housing Price Bubbles and Their Determinants in the Czech Republic

Michal Hlaváèek () and Lubos Komarek ()
Additional contact information
Michal Hlaváèek: Czech National Bank, http://www.cnb.cz/cz/index.html

Authors registered in the RePEc Author Service: Michal Hlaváček ()

Czech Journal of Economics and Finance (Finance a uver), 2011, vol. 61, issue 1, 67-91

Abstract: In this article we focus on factors affecting property prices in the Czech regions. We apply an empirical analysis to identify periods of property price overvaluation by three alternative approaches: using ratios related to house prices (price-to-income and price-to-rent), using simple analysis of time trends in regional dimension (HP filter) and using panel regression. The analysis identified overvalued property prices in 2002/2003 and partly also in 2007/2008. Compared to simple HP filters in the panel regression the size of the housing price overvaluation in 2007/2008 was relatively low, as the rise in property prices in this period was largely determined by fundamentals. Looking across individual region, there is apparent tendency for higher degree of overvaluation in regions with higher property prices. The only exception from this rule is Prague, which, as a capital city, seems to have many “specific” features.

Keywords: housing prices; housing bubbles; misalignment; panel data; Czech Republic (search for similar items in EconPapers)
JEL-codes: C2 R21 R31 (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed

Downloads: (external link)
http://journal.fsv.cuni.cz/storage/1205_hlavacek_upr.graf_10__resume.pdf (application/pdf)

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:fau:fauart:v:61:y:2011:i:1:p:67-91

Access Statistics for this article

More articles in Czech Journal of Economics and Finance (Finance a uver) from Charles University Prague, Faculty of Social Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Lenka Herrmannova ().

 
Page updated 2019-08-08
Handle: RePEc:fau:fauart:v:61:y:2011:i:1:p:67-91