Soft budget constraint as the determinant of creation of pricing bubbles on residential real estate market

Krystian Nowakowski

Abstract

The research problem undertaken in this study is the explanation of the residential real estate bubbles. It has been perfomed through understanding and explanation the soft budget constraint as the determinant of bubbles on the housing market. Due to the fact of high capital intensity of residential properties the linkage between their market and the financing system has been emphasized. After that soft budget constraint has been explained and conceptualized in the context of housing bubble creation. For that purpose the cybernetic model is presented. It consists of two levels of capital creation according to the flow of funds from the primary and secondary financial markets to the residential real estate market. The detailed description of the soft budget constraint elements of financing system has been performed at both stages: seeking funding for bank lending activity and in relations with borrowers. In the final part of deliberations before the research part the abstract model of the formation and bust of the housing bubble is created. The research of economic and institutional factors contributing in the bubble formation is perforrned for Poland, United States of America and Spain. The perforrned examination led to the conclusions that although the structure of the systerns was diversified there was one common feature during the bubble period - soft budget constraint.
Diploma typeDoctor of Philosophy
Author Krystian Nowakowski
Krystian Nowakowski,,
-
Title in EnglishSoft budget constraint as the determinant of creation of pricing bubbles on residential real estate market
Languagepl polski
Certifying UnitFaculty of Economics, Management and Tourism (EMaT)
Disciplineekonomia / nauki ekonomiczne(nauki ekonomiczne) / nauki społeczne()
Defense Date11-12-2015
End date21-12-2015
Supervisor Waldemar Tyc (EMaT / DM)
Waldemar Tyc,,
- Department of Microeconomics

Grażyna Węgrzyn (EMaT / DEaEP)
Grażyna Węgrzyn,,
- Department of Economics and Economic Policy

External reviewers Marian Gorynia
Marian Gorynia,,
-

Jacek Pietrucha
Jacek Pietrucha,,
-
Pages299
Keywords in EnglishSoft budget constraint, price bubbles, residential real estate market
Abstract in EnglishThe research problem undertaken in this study is the explanation of the residential real estate bubbles. It has been perfomed through understanding and explanation the soft budget constraint as the determinant of bubbles on the housing market. Due to the fact of high capital intensity of residential properties the linkage between their market and the financing system has been emphasized. After that soft budget constraint has been explained and conceptualized in the context of housing bubble creation. For that purpose the cybernetic model is presented. It consists of two levels of capital creation according to the flow of funds from the primary and secondary financial markets to the residential real estate market. The detailed description of the soft budget constraint elements of financing system has been performed at both stages: seeking funding for bank lending activity and in relations with borrowers. In the final part of deliberations before the research part the abstract model of the formation and bust of the housing bubble is created. The research of economic and institutional factors contributing in the bubble formation is perforrned for Poland, United States of America and Spain. The perforrned examination led to the conclusions that although the structure of the systerns was diversified there was one common feature during the bubble period - soft budget constraint.
KBN classificationekonomia
Thesis file
Nowakowski_K_Miekkie_Finansowanie_Jako_Determinanta.pdf 2,17 MB

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