Impact of the Economic Crisis on House Prices in the Czech Republic Measured on Hedonic Price Index on Bank Data

The Narodowy Bank Polski Workshop: Recent Trends in the Real Estate Market And its Analysis, 2013

30 Pages Posted: 24 Sep 2016

See all articles by Martin Lux

Martin Lux

Academy of Sciences of the Czech Republic - Institute of Sociology

Petr Sunega

Academy of Sciences of the Czech Republic

Date Written: September 9, 2014

Abstract

In the first section, this paper describes the methods employed to calculate the first ever hedonic price index created in the Czech Republic using data from the country’s biggest mortgage lenders. This section also presents the wider context of the creation of this index and its practical application. In the second section, hedonic price index data are used to demonstrate the impact of the global economic crisis on housing prices in the Czech Republic. The impact of the economic crisis on housing and mortgage markets is then analysed using methods from both neoclassic and institutional economics. The findings show that institutional factors relating to the housing system may have an important influence on the scope and character of the impact of the economic crisis on housing and mortgage markets in the Czech Republic.

Keywords: hedonic price index, Czech Republic, house prices, global financial crisis

JEL Classification: G12, G21, E32

Suggested Citation

Lux, Martin and Sunega, Petr, Impact of the Economic Crisis on House Prices in the Czech Republic Measured on Hedonic Price Index on Bank Data (September 9, 2014). The Narodowy Bank Polski Workshop: Recent Trends in the Real Estate Market And its Analysis, 2013, Available at SSRN: https://ssrn.com/abstract=2841730 or http://dx.doi.org/10.2139/ssrn.2841730

Martin Lux (Contact Author)

Academy of Sciences of the Czech Republic - Institute of Sociology ( email )

Jilska 1
Prague 1
Prague 1, Prague 160 00
Czech Republic

Petr Sunega

Academy of Sciences of the Czech Republic ( email )

Narodni 3, 111 42
Praha 1, 117 20
Czech Republic

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