CEU Electronic Theses and Dissertations, 2010
| Author | Ahmadov, Tural |
|---|---|
| Title | Housing Bubble and Determinants of House Prices: Azerbaijan Case |
| Summary | In this thesis I try to find out the existence of bubble period in real house prices in Azerbaijan and house price determinants. I mainly use three approaches: simple affordability and sustainability indicators, asset pricing approach and VECM methodology. Indicators show the period between 2002 and mid-2006 as bubble period in house prices. Asset pricing approach does not reject the existence of a bubble in this period. I construct VECM in order to analyze short-run dynamics of real house prices with fundamentals. In the long-run equilibrium real income and real interest rate are taken as fundamentals. In the short-run only interest rate plays a role in the dynamics of real house prices. House prices adjust to the long-run equilibrium nine percent in a quarter. |
| Supervisor | Rátfai, Attila |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2010/ahmadov_tural.pdf |
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