House Price Determinants in Selected Countries of the Former Soviet Union
April 1, 2010
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Summary
This paper analyses the recent boom-bust cycle in the housing markets of selected Former Soviet Union (FSU) countries. The analysis is based on a newly constructed database on house prices in the FSU countries. Our estimations suggest that house price developments can largely be explained by the dynamics of fundamentals, such as GDP, remittances, and external financing. Overall, we find that deviations of house prices from their fundamentals have not been pronounced, suggesting that house price bubbles have not been formed in the FSU countries.
Subject: Balance of payments, Housing, Housing prices, Inflation, National accounts, Prices, Real estate prices, Remittances
Keywords: Baltics, error-correction term, FSU country, GDP, house price development, house price elasticity, House prices, house prices in the FSU country, Housing, housing price development, Housing prices, Inflation, mortgage rate, pooled mean group estimator, price development, Real estate prices, Remittances, the Former Soviet Union, WP
Pages:
15
Volume:
2010
DOI:
Issue:
104
Series:
Working Paper No. 2010/104
Stock No:
WPIEA2010104
ISBN:
9781455200634
ISSN:
1018-5941
