2023
DOI: 10.13060/23362839.2023.10.1.550
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Applying the AD-AS Model to the Housing Market of Post-Socialist Economies

Abstract: 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 m… Show more

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