LONG-TERM DEPENDENCE OF HOUSING PRICES AND CONSTRUCTION COSTS IN EASTERN POLAND

Rafał Zbyrowski
2018 Quantitative Methods in Economics  
The main purpose of the study is to verify the hypothesis on the occurrence of a long-term relationship between the average prices of 1m 2 UFA (i.e. Usable Floor Area) and the construction costs of residential real estate per 1m 2 for selected 5 cities of Eastern Poland (Białystok, Kielce, Lublin, Olsztyn & Rzeszów). The panel model for cointegrated variables and panel cointegration tests are the tools of the analysis. On the basis of the econometric model constructed, the long-term elasticity
more » ... ng-term elasticity coefficient, which shows how average prices of flats change (i.e. the price of 1m 2 UFA) in selected cities of Eastern Poland as a result of changes in their production costs, was estimated.
doi:10.22630/mibe.2018.19.1.9 fatcat:lasei4omdvgkphwtiwnt3f57l4