The effect of housing loan subsidies on affordability: Evidence from Croatia

Kunovac, Davor; Žilić, Ivan

doi:10.1016/j.jhe.2021.101808

Cited by 7 publications

(11 citation statements)

References 16 publications

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“…The obtained results suggest that the developments in house prices and other domestic variables were mainly caused by external shocks whereby the changes in real estate prices have significant influence on domestic variables in Croatia. Kunovac and Žilić (2020), using an event study approach for the period from 2015 to 2019, show that the housing subsidy made house less affordable, especially for the non-recipients. A similar result is reached by Tica (2020) using regression analysis for the period from 2003 to 2019, where it investigates the impact of housing loan subsidies and low interest rates on foreign currency savings in Croatia on house prices and determines that there is a statistically significant relationship.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Selected Macroeconomic Variables on House Prices in Croatia

Benazić,

Učkar

2024

Ekonomska misao i praksa

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Recognizing the macroeconomic determinants that have a statistically significant influence on the formation of house prices is in the interest of the general public due to its informative effect on various interest groups involved in housing construction. Thus, real estate buyers, investors, as well as local government and self-government units should be interested in this information because monitoring of standard macroeconomic variables can provide conclusions about the possible development of residential property prices. Previously conducted research can be classified into four distinctive categories depending on what they take as determining variables: microelements specific to individual micro location, the impact of the COVID-19 pandemic, standard macroeconomic variables, or tourism development. The aim of this study is to analyze the influence of selected macroeconomic variables on residential property prices in Croatia. This study employs Autometrics, i.e. an automatic computer implementation of general-to-specific VAR (vector autoregressive) modelling framework and quarterly data on real GDP, domestic credit, consumer prices, interest rate, tourist arrivals and house prices in the period from March 2005 to September 2022. Performed Granger causality tests and impulse response functions analysis indicate that an increase in real GDP, domestic credit and tourist arrivals increases house prices in Croatia while an increase in consumer prices and interest rate reduces them.

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Section: Literature Reviewmentioning

confidence: 99%

The Impact of Selected Macroeconomic Variables on House Prices in Croatia

Benazić,

Učkar

2024

Ekonomska misao i praksa

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“…Kumar (2021) measured the impact of the housing program, particularly the subsidized housing lottery in Mumbai (India) on the population's welfare. Kunovac and Zilic (2022) investigated the effect of subsidizing housing loans in Croatia. They argued that the subsidy disrupted the normal intra-annual dynamics of housing transactions, and house prices rose immediately after the subsidies were introduced.…”

Section: Literature Reviewmentioning

confidence: 99%

Economic growth and housing spending within social protection: Correlation and causal study

Zhuchenko

Kubaščíková

Samoilikova

et al. 2023

Public and Municipal Finance

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The purpose of this study is to ground the causality, its character, and power between economic growth and housing spending within government social protection to strengthen poverty reduction. The study is conducted on a sample of 27 EU countries for 2012–2021 according to the following indicators: government expenditure on housing within social protection, government expenditure on housing development, and GDP per capita growth. Correlation analysis revealed the relationship between the variables. The paper employed time lags with the most significance based on Pearson and Spearman correlation coefficients depending on normal data (Shapiro-Wilk test). The causal analysis determined which of the studied indicators is the cause and consequence of established dependence based on the results of the Granger test. Calculations are made in STATA software. It is confirmed that government expenditure on housing within social protection influences GDP per capita growth in 14 countries (the highest impact is in Greece and Spain) and government expenditure on housing development – in 17 countries (the biggest influence is in Romania, the Slovak Republic, Ireland, and Lithuania). It is also emphasized that government expenditure on housing development influences economic growth more significantly and with higher strength than government expenditure on housing within social protection. The obtained results can be useful in further research and government decision-making in social and economic policy, particularly regarding the expediency of increasing government spending for affordable housing and its development according to social protection programs, poverty reduction, and inclusive economic growth. Acknowledgments The study is funded by the Ministry of Education and Science of Ukraine (No. 0122U000781) and the Vega Agency (No. 1/0638/23).

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“…Within the recent literature, there are several categories within which Housing market price movements the DID method has been used such as in housing markets and health-related analyses including COVID-19 policies. The literature has primarily analyzed the effect of factors such as construction of new highways, new mass transit constructions, new zoning policies, subsidies and even corporate relocations (Braakmann and McDonald, 2020;Diao et al, 2017;Freemark, 2020;Kunovac and Zilic, 2021;Murray and Bardaka, 2021) . Similarly, the literature has used the DID methodology to quantify the effect of various health interventions, especially during the COVID-19 pandemic with quantifying the impact of measures such as mask mandates instituted by national and local governments (Abouk and Heydari, 2021;Dave et al, 2020;Lyu and Wehby, 2020;Nguyen, 2021;Pichler et al, 2020).…”

Section: Ijhma 163mentioning

confidence: 99%

Housing market price movements under tech industry expansion during COVID-19

Jiao

Bhat

Azimian

et al. 2022

IJHMA

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Purpose This study aims to analyze the impact of technology-based corporation relocation on housing price indices during COVID-19 within the metropolitan areas of Austin, Texas and Seattle/Bellevue, Washington.The corporations under observation were Tesla and Amazon, respectively. The analysis intends to understand economic drivers behind the housing market and the radius of its effect while including fixed and random effects. Design/methodology/approach This study used a difference-in-difference (DID) method to evaluate changes in housing price index near and further away from Tesla’s and Amazon’s new corporate locations. The DID method allows for the capture of unique regional characteristics, as it requires a treatment and control group: housing price index and 5-mile and 10-mile search radii centered from the new corporate location. Findings The results indicated that corporate relocation announcements had a positive effect on housing price index post-pandemic. Specifically, the effect of Tesla’s relocation in Austin on the housing price index was not concentrated near the relocation site, but beyond the 5- and 10-mile radii. For Seattle/Bellevue, the effect of Amazon’s relocation announcement on housing price index was concentrated near the relocation site as well as beyond a 10-mile radius. Interestingly, these findings suggest housing markets incorporate speculation of prospective economic expansion linked with a corporate relocation. Originality/value Previous literature assessed COVID-19 housing market conditions and the economic effects of corporate relocation separately, whereas this study analyzed the housing price effects of corporate relocation during COVID-19. The DID method includes spatial and temporal analyses that allow for the impact of housing price to be observed across specified radii rather than a city-wide impact analysis.

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The effect of housing loan subsidies on affordability: Evidence from Croatia

Cited by 7 publications

References 16 publications

The Impact of Selected Macroeconomic Variables on House Prices in Croatia

The Impact of Selected Macroeconomic Variables on House Prices in Croatia

Economic growth and housing spending within social protection: Correlation and causal study

Housing market price movements under tech industry expansion during COVID-19

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