Is there a real estate bubble in the Czech Republic?

0359113 - NHU-C 2012 RIV CZ eng J - Článek v odborném periodiku
Zemčík, Petr
Is there a real estate bubble in the Czech Republic?
Finance a úvěr-Czech Journal of Economics and Finance. Roč. 61, č. 1 (2011), s. 49-66. ISSN 0015-1920. E-ISSN 0015-1920
Grant CEP: GA ČR GA402/09/1755; GA MŠMT LC542
Výzkumný záměr: CEZ:MSM0021620846
Klíčová slova: Central and Eastern Europe * house prices * panel data
Kód oboru RIV: AH - Ekonomie
Impakt faktor: 0.346, rok: 2011
http://journal.fsv.cuni.cz/storage/1204_zemcik.pdf

Real estate prices more than doubled in many countries of Central and Eastern Europe from 2003 to 2008. In this paper, I provide one of the first assessments of whether housing prices in this region correspond to rents, i.e. to cash-flows related to an apartment purchase. State-of-the-art panel data stationarity and Granger causality techniques are employed to test the implications of the standard present value model using regional data from the Czech Republic. Apartment prices are only slightly overvalued. In addition, changes in prices are helpful in predicting changes in rents and vice versa.
Trvalý link: http://hdl.handle.net/11104/0196961