Real state as housing and as a financial investment: A first assesment for Argentina

There exists a widespread perception that Argentine households channel a large share of their savings into real state. However, no hard evidence has produced to date to measure how important this saving behavior is for the determination of housing prices vis-à-vis the traditional housing motive to b...

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Autores principales: Bebczuk, Ricardo Néstor, Garegnani, María Lorena
Formato: Articulo Documento de trabajo
Lenguaje:Inglés
Publicado: 2012
Materias:
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/45904
http://www.depeco.econo.unlp.edu.ar/doctrab/doc95.pdf
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id I19-R120-10915-45904
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
JEL: C32, G21, R21
Argentina
economía
inversión
housing demand
financial investment
equilibrium correction model
spellingShingle Ciencias Económicas
JEL: C32, G21, R21
Argentina
economía
inversión
housing demand
financial investment
equilibrium correction model
Bebczuk, Ricardo Néstor
Garegnani, María Lorena
Real state as housing and as a financial investment: A first assesment for Argentina
topic_facet Ciencias Económicas
JEL: C32, G21, R21
Argentina
economía
inversión
housing demand
financial investment
equilibrium correction model
description There exists a widespread perception that Argentine households channel a large share of their savings into real state. However, no hard evidence has produced to date to measure how important this saving behavior is for the determination of housing prices vis-à-vis the traditional housing motive to buy property. In this light, this paper assesses for the first time whether housing prices in Argentina are mostly driven by housing or by investment motives. To this end, we devised a simple empirical test taking the form of an Equilibrium Correction model of apartment prices in Buenos Aires City on four explanatory variables that separately capture the housing motive (affordability and mortgage loans) and the investment motive (private bank deposits and income). It is found that private bank deposits and income have strong long and short run effects on housing prices behavior. Affordability only shows a short run effect, while mortgage loans turn out to be non-significant. These findings suggest, in line with the popular view on this topic, that real state fulfills a prominent role as a financial investment in Argentina.
format Articulo
Documento de trabajo
author Bebczuk, Ricardo Néstor
Garegnani, María Lorena
author_facet Bebczuk, Ricardo Néstor
Garegnani, María Lorena
author_sort Bebczuk, Ricardo Néstor
title Real state as housing and as a financial investment: A first assesment for Argentina
title_short Real state as housing and as a financial investment: A first assesment for Argentina
title_full Real state as housing and as a financial investment: A first assesment for Argentina
title_fullStr Real state as housing and as a financial investment: A first assesment for Argentina
title_full_unstemmed Real state as housing and as a financial investment: A first assesment for Argentina
title_sort real state as housing and as a financial investment: a first assesment for argentina
publishDate 2012
url http://sedici.unlp.edu.ar/handle/10915/45904
http://www.depeco.econo.unlp.edu.ar/doctrab/doc95.pdf
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