Applying the AD-AS Model to the Housing Market of Post-Socialist Economies

We propose applying the standard aggregate demand and aggregate supply model (AD-AS) to the housing market. It is a very simple and intuitive tool that can help shed light on the major forces at play in the market and that can supplement the use of the general equilibrium and dynamic stochastic equilibrium models (DSGE). The latter models are very sophisticated and aim to cover many aspects of the economy, but they require a significant number of long time series to estimate the model parameters. However, in many countries, such as post-socialist countries, the time series are short. Those models moreover cover only real house prices, but in certain situations we should consider real and nominal prices at the same time.

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Document Type
article
ISSN
2336-2839
Volume / Issue
10 / 1
Pages
14-26
Date of publication
31.3.2023

Cite this article

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£aszek, J. , K. Olszewski 2023. ‘Applying the AD-AS Model to the Housing Market of Post-Socialist Economies.’ Critical Housing Analysis 10 (1): 14-26. https://doi.org/10.13060/23362839.2023.10.1.550