Maintaining the stability of the housing market in the event of an economic shock
International Journal of Housing Markets and Analysis
ISSN: 1753-8270
Article publication date: 10 March 2022
Issue publication date: 28 February 2023
Abstract
Purpose
This paper aims to identify the economic stimulus measures that ensure stability of the Lithuanian housing market in the event of an economic shock.
Design/methodology/approach
The econometric analysis includes stationarity test, Granger causality test, correlation analysis, autoregressive distributed lag models and cointegration analysis using ARDL bounds testing.
Findings
The econometric modelling reveals that the housing price in Lithuania correlates with quarterly changes in the gross domestic product and approves that the cycles of the real estate market are related to the economic cycles. Economic stimulus measures should mainly focus on stabilizing the economics, preserving the cash and deposits of households, as well as consumer spending in the case of economic shock.
Originality Value
This study is beneficial for policy makers to make decisions to maintain stability in the housing market in the event of any economic shock.
Keywords
Citation
Stundziene, A., Pilinkiene, V. and Grybauskas, A. (2023), "Maintaining the stability of the housing market in the event of an economic shock", International Journal of Housing Markets and Analysis, Vol. 16 No. 2, pp. 255-272. https://doi.org/10.1108/IJHMA-12-2021-0142
Publisher
:Emerald Publishing Limited
Copyright © 2022, Emerald Publishing Limited